Air Canada’s cargo business could be impacted by a phased wind down of most of the airline’s operations in reaction to an employee strike.
Following notice of a pay-related strike by the Canadian Union of Public Employees; (CUPE), which represents 10,000 flight attendants at Air Canada and Air Canada Rouge, Air Canada said it had issued a statutory 72-hour lockout notice to CUPE and “will begin a phased wind down of most of its operations to be completed over the next three days”.
The airline said it had also sought government-directed arbitration to resolve the situation.
While a strike involving flight attendants won’t affect freighter operations, it could impact cargo carried in the bellies of passenger aircraft.
In a press release issued on 13 August, Michael Rousseau, president and chief executive of Air Canada, said: “We regret the impact a disruption will have on our customers, our stakeholders and the communities we serve.
“However, the disappointing conduct of CUPE’s negotiators and the union’s stated intention to launch a strike puts us in a position where our only responsible course of action is to provide certainty by implementing an orderly suspension of Air Canada’s and Air Canada Rouge’s operations through a lockout.
“As we have seen elsewhere in our industry with other labour disruptions, unplanned or uncontrolled shutdowns, such as we are now at risk of through a strike, can create chaos for travellers that is far, far worse.”
Air Canada’s passenger and cargo operations were previously under threat after 15 months of discussions between Air Canada and the Air Line Pilots Association (ALPA) trade union over pay and conditions for pilots.
Talks broke down at the end of August 2024 and Air Canada subsequently began preparing for potential pilot strikes with contingency plans to suspend most of its operations.
However, in September 2024, Air Canada reached a tentative, four-year collective agreement with ALPA.
Air Canada’s cargo revenues grew 10% year on year in the second quarter of 2025, largely due to demand in the Pacific and Latin American markets.
