Air Canada strike: Ottawa orders binding arbitration

Published on Aug 16, 2025, 4:54 pm CDT

5 min read

Air Canada's labour crisis flipped fast on August 16, 2025. Flight attendants walked out just after 1:00 a.m. Eastern, prompting the carrier to suspend all Air Canada and Air Canada Rouge flying. By afternoon, the federal government directed the Canada Industrial Relations Board to impose binding arbitration, effectively ending the strike. The shutdown stranded well over 100,000 travelers and disrupted nearly 700 daily flights across Canada, U.S.-Canada transborder routes, and long-haul networks. Even with the order, a full restart will take several days, and travelers should not go to the airport without confirmed alternatives.

Key Points

Why it matters: Nearly all mainline and Rouge flights were halted, stranding 100,000 to 130,000 travelers per day.
Travel impact: Canada domestic, U.S.-Canada transborder, and long-haul flights saw widespread cancellations.
What's next: Back-to-work plus binding arbitration, with a multi-day restart to normalize schedules.
AC Express flights by Jazz and PAL continued operating on limited routes.
Rebooking windows and refunds are available, with 48-hour obligations under Canada's APPR.
Do not go to the airport unless you have a confirmed rebooking or alternative itinerary.

Snapshot

Air Canada suspended operations for mainline and Rouge after more than 10,000 flight attendants began a legal strike at about 1:00 a.m. Eastern on August 16. Ottawa then ordered both sides into binding arbitration the same day, triggering a back-to-work process managed by the Canada Industrial Relations Board. The airline and union remain far apart on pay and compensation for unpaid ground duties, including boarding time. Air Canada said a full restart will take days as aircraft and crews are repositioned and schedules rebuilt. Air Canada Express flights, operated by Jazz and PAL, continued. Travelers affected between August 15 and 19 can change dates at no charge within set windows or request refunds, but capacity on other airlines is tight.

Background

The dispute follows a 72-hour strike notice issued August 13 after months of federally mediated talks. Air Canada proposed a four-year package the union rejected, citing pay and unpaid ground duties. The union's strike mandate covered roughly 10,000 attendants at the mainline carrier and Air Canada Rouge. Ahead of the walkout, the airline began a phased wind-down and warned travelers not to go to airports without confirmed alternatives. Adept has tracked the escalation all week, including schedule cuts and a potential network shutdown. See our earlier coverage, Air Canada strike: weekend shutdown risk grows and Air Canada Strike: Cancellations Thursday, Shutdown Saturday if talks fail.

Latest Developments

Walkout halts mainline and Rouge, Express continues on select routes

Flight attendants began strike action just after 1:00 a.m. Eastern on August 16. Air Canada suspended nearly all Air Canada and Air Canada Rouge flights, affecting about 700 daily departures and between 100,000 and 130,000 travelers per day. Air Canada Express flights operated by Jazz and PAL continued to run, though connections were limited. Picket lines formed at Toronto Pearson International Airport (YYZ), Montréal-Pierre Elliott Trudeau International Airport (YUL), Vancouver International Airport (YVR), and Calgary International Airport (YYC). The carrier reiterated that travelers should not go to the airport without a confirmed itinerary on Air Canada or another airline due to scarce same-day options during peak season.

Ottawa orders binding arbitration, restart to take several days

Later on August 16, the federal government directed the Canada Industrial Relations Board to end the stoppage and send the dispute to binding arbitration. The existing collective agreement stays in force until an arbitrator issues a new contract. Even with the order, Air Canada said restoring the network will take multiple days as aircraft and crews are repositioned and connections are rebuilt. Expect rolling delays and cancellations while schedules normalize across Canada, U.S.-Canada transborder routes, and long-haul markets. Travelers on flights through hubs such as Toronto Pearson (YYZ), Montréal-Trudeau (YUL), and Vancouver (YVR), and on U.S. gateways like O'Hare International Airport (ORD), should monitor rebookings closely.

Analysis

Airline restarts after a full or near-full stop are complex. Aircraft and crews are out of position, and legal duty-time limits restrict how quickly flying can ramp back up. Long-haul routes are hardest to rethread because they require specific aircraft, augmented crews, and coordinated downline connections. Given summer load factors, spare seats on partner airlines are limited. That constrains reaccommodation, even when carriers have interline or alliance options. Expect four to five days of rolling disruptions as banks of flights, maintenance windows, and crew pairings realign. Travelers on Canada domestic and U.S.-Canada transborder routes will likely see earlier recovery than deep long-haul. Under Canada's Air Passenger Protection Regulations, a labour disruption is considered outside the airline's control. The airline must offer rebooking within 48 hours on its own services or on a partner, or provide a refund if it cannot rebook within that window. Separate from regulatory compensation, Air Canada has published change-fee waivers and specific refund terms for tickets in the core impact window. Document everything, keep receipts, and use credit-card travel protections where applicable.

Final Thoughts

Today's intervention ends the immediate labour stoppage but not the operational drag. A multi-day restart is unavoidable as Air Canada rebuilds its schedule. Do not go to the airport unless your rebooking is confirmed, and verify any connections, especially for long-haul. Use Manage My Booking first, then call centers only if necessary. If the airline cannot rebook you to depart within 48 hours, you can opt for a refund instead. Expect better seat availability later in the week as aircraft and crews return to plan. We will continue to track arbitration milestones and the network recovery from the Air Canada strike.