Air Canada Strike Declared Illegal; Airline Suspends Profit Forecast

• Canada Industrial Relations Board declares the strike unlawful and orders flight attendants back to work.
• CUPE says the walkout will continue while it challenges the order; binding arbitration was imposed.
• Air Canada suspends third-quarter and full-year profit guidance due to the disruption.‍
• Impact: up to 700 flights/day and roughly 130,000 passengers/day affected at peak season.‍
• Core dispute includes pay for ground/boarding time; U.S. peers have begun compensating parts of this work.

Air Canada’s labour turmoil escalated as the Canada Industrial Relations Board ruled the flight-attendant strike illegal and ordered crews to resume duties. The airline, still rebuilding schedules after a weekend of grounded operations, withdrew its third-quarter and full-year guidance, citing volatility from the stoppage and ongoing uncertainty around a restart. ‍

The ruling follows Ottawa’s move to push both sides into binding arbitration. CUPE, representing about 10,000 attendants, argues the order is unconstitutional and has vowed to continue striking as it pursues legal avenues. Regulators set deadlines for the union to instruct members back to work, while Air Canada warned of accountability measures for those who refuse. Operationally, the carrier’s attempt to revive service has slipped, with rolling cancellations still hitting hubs nationwide.

At stake is a pay model attendants say ignores essential ground tasks like boarding. The dispute lands as some U.S. airlines begin paying for portions of that time, sharpening pressure on legacy practices. For investors, the guidance suspension underscores financial opacity until flights reliably resume; for travellers, the near-term picture remains choppy as court enforcement, potential legislation, or a late negotiating breakthrough determine how quickly the network stabilizes.