Air Canada Resolves Flight Attendants' Drama: What’s Next?

Air Canada is the flag carrier of Canada and the largest carrier in the country. Since the turn of the millennium, Air Canada’s once-dominant market share has declined, as low-cost carriers have risen. Even so, Air Canada remains the dominant carrier in Canada and possesses almost all of the country’s widebody aircraft.

The three-day August 2025 Air Canada strike is over, flight attendants have gone back to work, and the airline’s aircraft are flying again. But why were Air Canada flight attendants striking, and what’s next for the airline? Here is what to know about the Air Canada strike and what flight attendants can expect.

Air Canada Strike And Resumption Of Flights

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The Air Canada and Air Canada Rouge strike has come to an end after the airline and the union representing the airline’s flight attendants came to a tentative agreement. This put an end to the days-long strike that resulted in the cancellation of thousands of flights and left hundreds of thousands of passengers unable to fly. Over 700 flights had been canceled a day due to the strike between Air Canada and Air Canada Rouge.

Hugh Pouliot, spokesman for the Canadian Union for Public Employees (CUPE), stated, “Flight attendants at Air Canada and Air Canada Rouge have reached a tentative agreement, achieving transformational change for our industry after a historic fight to affirm our Charter rights. Unpaid work is over. We have reclaimed our voice and our power.” The CUPE represented some 10,000 striking flight attendants.

The Canadian Industrial Relations Board (CIRB) had declared the strike illegal. Those who went against the CIRB could have been found in contempt of court, which could have led to fines or jail time if the government had sought court enforcement. Even so, flight attendants stood on the picket line. According to Reuters, Hugh Pouliot had previously even said he preferred to risk jail time than allow flight attendants to be forced back to work by the federal government.

Air Canada’s Public Offer

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It’s unclear exactly what the agreement between Air Canada and the union is. On its website, CUPE simply states, “Flight attendants at Air Canada and Air Canada Rouge have reached a tentative agreement, achieving transformational change for our industry after a historic fight to affirm our Charter rights.” However, it is clear that the flight attendants are getting a significant increase in wages.

A news release by Air Canada on August 14, titled “Air Canada Provides Clarity on its Offer to CUPE,” provides some clues. The airline offered a 38% increase in total compensation over four years. This would include a new provision for ground pay; hourly rates would go as high as CAD 94 (USD 67) per hour in the first year, and hourly pay would increase 12-16% in the first year. Air Canada said by 2027, a senior flight attendant would earn CAD 87,000 (USD 63,000) annually on average.

The top 20% of flight attendants would earn CAD 90,000 (USD 65,000) or more a year. Other benefits would include improvements to health benefits and pension plans, increased paid vacation, measures to improve work-life balance, and more. Air Canada claims it is the only Canadian airline to offer flight attendants access to a pension with a defined benefit component and that they would earn up to CAD 17 (USD 12) more per hour than those working for the largest domestic competitor (WestJet).

Flight Attendants’ Pay With Air Canada

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According to Air Canada’s website, Air Canada and Air Canada Rouge employ around 10,400 flight attendants who are represented by the CUPE. It is difficult to compare flight attendants’ pay from different airlines and different countries. Not only do cabin crew earn in different currencies, but compensation is also complicated. The following is per Air Canada’s website before the new negotiated pay.

A flight attendant’s compensation is made up of base pay, incentive awards, a defined pension plan, health benefits, sick days, vacation pay, and discounted leisure travel for not only themselves, but also their families and friends. A flight attendant who was hired in 2015 on a starting wage of CAD 25.13 (USD 18) per hour would be earning CAD 63.07 (USD 46) per hour in 2025. Service directors are paid CAD $73.03 (USD 53) per hour on narrowbody aircraft and CAD 87.01 (USD 63) per hour on widebody aircraft in 2025.

With Rouge flights, flight attendants are paid CAD41.39 with five years of service. According to Air Canada, a service director working for Air Canada earned an average of CAD 80,000 (USD 58,000) in 2024, excluding incentive rewards and Health and Pension benefits. The airline also says that half of Air Canada’s mainline flight attendants earned over CAD 54,000 (USD 39,000) in 2024, excluding the aforementioned rewards and benefits. The highest-paid flight attendants earned in excess of CAD 70,000 (USD 50,600). For reference, the average US flight attendant earns USD 67,800 to USD 86,400 per year.

Canada Offers Much Cheaper Fares Than The US

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Canadian airfares are also typically much cheaper than their counterparts in the United States. The average US domestic airfare is around USD 397 in 2025. In the EU and UK, many competing low-cost carriers, shorter distances, and dense populations help reduce the average airfare to around USD 105.

The US Bureau of Transportation Statistics provides estimates for the average domestic fares from major airports. From Los Angeles, the average fare is USD 408, and USD 417 from NY-JFK. From NY-LaGuardia, the average fare is USD 337. Orlando is notable for being a large airport with comparatively low-cost airfares at USD 294.

In 2019, Statistics Canada listed the average domestic Canadian flight at CAD 176.60 or around USD 128. The average Canadian airfare is estimated to have increased to around USD 190. This makes domestic Canadian fares in a similar league, but still more expensive than Australia, where the average airfare is around USD 130. The low domestic Canadian fares are confusing, as OAG reported that Air Canada’s average domestic airfare was USD 694 in 2024. While low-cost carriers like WestJet and Porter offer lower fares, it’s unclear why it’s so much higher than Statistics Canada’s average airfare. One figure may include taxes, while the other doesn’t.

Air Canada Fleet

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Air Canada has a mainline fleet of 216 aircraft, while its low-cost Air Canada Rouge subsidiary has a fleet of 37 aircraft. Air Canada Rouge’s fleet is now completely made up of Airbus A320 family narrowbody aircraft. Air Canada’s narrowbody fleet is composed of Airbus and Boeing narrowbody aircraft with 37 A220s, 39 Airbus A320 family, and 47 Boeing 737 aircraft.

Air Canada is the only Canadian airline to have purchased the Canadian-built (formerly Bombardier CSeries) A220 airliner. Its widebody fleet consists of eight remaining aging Boeing 767s, 25 Boeing 777s, and 40 Boeing 787s (inc. eight 787-8s and 32 787-9s). It has another 18 Boeing 787-10s on order.

According to CBC News, when it comes to the Canadian airline share of domestic passengers in 2023, Air Canada has a 34.1% share, WestJet has 30.1%, Flair Airlines comes next with a 9.8% share, Porter’s share is 9.0%, and all others have 17.0%. Canadian authorities have drawn attention to the Air Canada and WestJet duopoly with recommendations on how to increase competition.

Air Canada Set To Continue On

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Overall, the flight attendants’ strikes are not likely to impact Air Canada much. When it comes to long-haul flights, Air Canada dominates with a fleet of 73 widebody aircraft, while WestJet only has a fleet of seven Dreamliners. The pay rise for flight attendants should make the airline more attractive to people to work for, although it’s unclear how much it will impact the airline’s fares.

WestJet is Air Canada’s primary competition and already generally offers lower airfares on average. WestJet is a low-cost airline that is sometimes described as having the lowest-priced flights in Canada. This makes it appealing to budget-conscious travelers, while Air Canada is a full-service national airline offering a higher standard of service, but also at a premium.

While Air Canada is the flag carrier of Canada, it is not publicly owned, although the Government of Canada does have an approximately 6.4% share in the airline as a result of a pandemic bailout. Air Canada was previously owned by the government, but became fully privatized in 1989. The airline’s shares are publicly traded. While the private equity firm, Onex Corp, has a 75% share of WestJet, a group of international airlines that includes Delta Air Lines is acquiring the remaining 25% share.