Air Canada has released its third quarter 2025 results, highlighting the significant financial and operational impact of the disruption caused by negotiations with the Canadian Union of Public Employees (CUPE). According to the official report, more than 3,200 flights were cancelled in August following the strike notice and subsequent work stoppage, which the airline has described as “unlawful.”
The financial impact of the disruption is estimated at 375 million U.S. dollars in operating income and adjusted EBITDA. This figure stems from a combination of three factors: revenue losses of approximately 430 million dollars, mainly from passenger refunds, mandatory compensation, and reduced bookings in August and early September; 145 million dollars in avoided costs, largely due to lower fuel expenses from reduced flying; and an additional 90 million dollars in extraordinary expenses, primarily reimbursements to passengers and labor-related costs.
The Canadian flag carrier expressed regret over the strike’s impact on travelers, noting that it has already processed more than 60,000 compensation claims. Air Canada continues to provide updates on a dedicated website about the progress of claim resolutions and the implementation of its so-called “goodwill policies.”
As for its relationship with CUPE, negotiations have now moved into arbitration to finalize the section of the collective agreement concerning wages. Under the agreed rules, neither side will be entitled to initiate labor action or strikes during the arbitration process or throughout the four-year term of the new contract.
