Air Canada Faces $375M Q3 Loss after Flight Attendant Strike

Air Canada has announced that it anticipates a Q3 2025 operating income loss of approximately CA$375 million (about US$270 million) due to a flight attendant strike by the CUPE.

The strike, which began in August 2025, led to the cancellation of over 3,200 flights.

The estimated loss comprises a revenue loss of approximately CA$430 million (US$504 million) and incremental expenses of roughly CA$90 million (US$105 million) from customer reimbursements and additional labor-related costs.

At the same time, the airline saved around CA$145 million (US$170 million) through lower fuel consumption due to reduced flying activity.

Air Canada has lowered its full-year 2025 guidance, projecting EBITDA of CA$2.9 to 3.1 billion (US$3.4 to 3.6 billion), down from earlier estimates of CA$3.2 to 3.6 billion (US$3.7 to 4.2 billion).

The carrier expects a 2 percent decline in operating capacity compared to Q3 2024.

Capacity growth is now forecasted to be between 0.5 percent and 1.5 percent, compared to prior expectations of 1 percent to 3 percent.

Photo by Marko Pavlichenko on Unsplash