Air Canada's nationwide flight attendant strike — the carrier's first since 1985 — has forced the suspension of nearly all passenger services and disrupted a major share of Canada's air freight capacity.

The walkout by more than 10,000 cabin crew, represented by the Canadian Union of Public Employees (CUPE), began on August 16 after eight months of stalled contract talks over wages and unpaid work hours, which CUPE says can add up to about 35 hours a month. 

The Canadian federal government has ordered binding arbitration — directing both Air Canada and the Canadian Union of Public Employees to resume operations — but CUPE leaders have said members will remain on strike in defiance of that back‑to‑work order, calling it unconstitutional and vowing to keep picket lines active at major airports until a fair deal is reached, even at the risk of fines or other penalties for non‑compliance.

The Canada Industrial Relations Board set 2 p.m. ET on August 17, 2025, as the deadline for flight attendants to return to work.

Meanwhile, Air Canada Cargo's six Boeing 767 freighters remain in service, but are operating on a reduced schedule, limiting capacity and leaving some shipments — including pharmaceuticals, perishables, and machinery — stranded.

The grounding of passenger aircraft has removed critical bellyhold space from the network, further tightening freight availability.

The cargo arm of Air Canada said all operations of Air Canada and Air Canada Rouge had been suspended, but they have put out a temporary freighter schedule.

"Air Canada Cargo is operating a temporary freighter schedule, including capacity to Europe. This temporary schedule will enable connections of cargo to key destinations," Air Canada Cargo said in an update on its website.

"We have also added a comprehensive trucking network between freighter destinations and our key hubs," it added.

Most of the dedicated freighter service, however, serves North, Central, and South America, along with limited routes to Europe, but none currently operate to Asia —served only via bellyhold capacity on passenger flights.

Air Canada Cargo said "any existing bookings are subject to delay or cancellation."

Industry groups have warned that prolonged disruption could ripple through manufacturing, retail, and healthcare sectors, as Air Canada typically moves more than 40% of the country's air cargo.

Update: On August 18,  Air Canada said all flights of Air Canada and Air Canada Rouge remain suspended due to the CUPE failing to direct its flight attendant members to resume the performance of their duties as directed by the CIRB. The CIRB has also directed flight attendants to resume the performance of their duties immediately.

"In response to a labour disruption by CUPE that led to a strike on August 16, Air Canada has been cancelling flights on a rolling basis. At present, all flights by Air Canada and Air Canada Rouge are cancelled until the afternoon (EDT) of August 19, 2025. Air Canada Express flights operated by Jazz or PAL continue to operate as normal," Air Canada said in its latest update.

"Air Canada's intended restart of Air Canada and Air Canada Rouge operations, which have been grounded since August 16 as a result of CUPE's labour disruption, was prevented yesterday by CUPE leadership’s unlawful strike activities," it added.