Strike Fallout Hits Air Canada Hard
Air Canada is feeling the sting of the flight attendant strike as the airline lowers its full-year guidance. The Montreal-based carrier says the labour disruption cost roughly $375 million, forcing it to adjust expectations for 2025 earnings. The strike not only disrupted thousands of flights but also pushed the airline to recalibrate its long-term strategy.
Lowered Earnings Outlook
The company now expects adjusted EBITDA between $2.9 billion and $3.1 billion for the year. That marks a sharp drop from the previously suspended guidance of $3.2 billion to $3.6 billion. The revision highlights how much the labour unrest reshaped Air Canada’s financial outlook in just a few months.
Third Quarter Takes a Hit
For the third quarter, Air Canada projects operating income between $250 million and $300 million. This dip reflects the cancellation of more than 3,200 flights. Capacity is also expected to fall by about two percent compared to the same period last year, adding further strain to operations.
Breaking Down the $375M Impact
The airline identified three main factors driving the financial blow:
Roughly $430 million lost in refunds, compensation, and weaker bookings.
Around $90 million in added costs linked to reimbursements and labour expenses.
A $145 million cushion from lower fuel prices, which offset some losses.
While fuel savings softened the damage, the numbers underline just how disruptive the strike proved to be.
The Strike and Aftermath
The strike lasted three days, ending on August 19, but operations took longer to return to normal. Earlier this month, flight attendants overwhelmingly rejected Air Canada’s proposed wage deal. The agreement would have boosted pay and created a new structure for time spent working while aircraft remain on the ground. Since workers turned it down, the wage dispute is now headed to mediation, as both sides had agreed.
What Comes Next
As the airline navigates a more uncertain financial path, industry watchers will keep a close eye on negotiations with employees and the recovery of passenger confidence. Air Canada’s revised outlook demonstrates how labour relations and operational stability remain key to its long-term success.
Stay tuned to Maple Wire for ongoing updates on Air Canada and the future of Canadian aviation.
