Air Canada aircraft at the Vancouver International Airport in August. The airline has lowered its guidance for the year after taking a hit from this summer’s flight attendant strike.DARRYL DYCK/The Canadian Press
Air Canada AC-T has lowered its guidance for the year after taking a hit from the flight attendant strike that took place earlier this summer.
The Montreal-based airline said in a press release that it estimates the cost of the labour disruption was $375-million on operating income and adjusted earnings before interest, taxes, depreciation and amortization.
Air Canada said that it now expects to make between $2.9-billion and $3.1-billion in adjusted EBITDA for the full year. This is in comparison the airline’s previous 2025 guidance that it suspended in August, which had projected adjusted EBITDA between $3.2-billion and $3.6-billion.
Air Canada flight attendants scored a big win. Don’t expect the same for other unions
For the third quarter, Air Canada said it expects operated capacity to decline by around two per cent from the same period last year, due to the cancellation of more than 3,200 flights. It also expects operating income between $250-million and $300-million during the quarter.
The airline said three factors combined for the $375-million financial impact of the strike. The first is an estimated $430-million revenue hit from refunds, customer compensation and lower travel bookings. It also had about $90-million in incremental costs associated with reimbursements for customers and some labour operating costs.
However, the company also saved $145-million, primarily due to lower fuel costs, which reduced the loss.
The Air Canada flight attendant strike lasted three days and ended on Aug. 19, though it took longer to ramp up to full operations.
Earlier this month, Air Canada flight attendants massively rejected the employer’s wage offer, with the airline saying the wage portion will now be referred to mediation as previously agreed to by both sides.
The tentative deal that was voted down raised wages for workers and established a pay structure for time worked when aircraft are on the ground.