Latest News

Air Canada expects a $270 million hit to its operating income due to the labor disruptions

Air Canada said that it expects to lose C$375,000,000 ($269.82,000,000) in operating income due to labor disruptions after its flight attendants engaged in a four-day walkout last August.

The company has also revised its outlook for the 2025 results after withdrawing their forecast due to disruptions in operations caused by the strike.

Air Canada expects a core adjusted profit of between C$2.9 and C$3.1 in 2025, as opposed to its previous range of C$3.2 to C$3.6.

A tentative agreement was reached after the strike ended. 10,000 Air Canada flight attendants, represented by the Canadian Union of Public Employees, refused to return to work despite government attempts to do so.

The wage agreement was rejected by the flight attendants of the airline in September. The two parties agreed to no labor disruption and that flights would continue as usual.

Arbitration will be used to resolve the dispute.

Montreal-based airline Air Canada now expects its available seat mile capacity will rise between 0.5% to 1%, as opposed to the previous forecast of 1% – 3%. ($1 = 1.3898 Canadian dollars) (Reporting by Aishwarya Jain in Bengaluru; Editing by Alan Barona)

(source: Reuters)