by Jen Mallia
Last updated: 9:45 AM ET, Wed April 1, 2026
The short-lived Air Canada flight attendants strike last summer caused headaches throughout the industry. Under Air Passenger Protection Regulations (APPR), travellers are afforded protection during labour actions, something the Canadian Transportation Agency (CTA) ruled Air Canada failed to do during the August strike.
The CTA ruled on 71 instances of the airline failing to rebook passengers on alternate flights and failing to provide adequate compensation to affected customers, both of which it is required to do under APPR. The airline was issued a notice of violation and a $426,000 fine for falling short of its legal obligations.
The ruling reads, in part, “Between August 15 and 20, 2025, following flight cancellations for a reason outside the carrier’s control, Air Canada, a large carrier, committed multiple violations of the APPR when it failed to, at the passengers choice, provide a refund for any unused portion of the ticket, or provide the passenger, free of charge, with a confirmed reservation for the next available flight that is operated by any carrier, contrary to subsection 18(1.1) of the APPR.”
Air Canada, however, isn’t accepting the judgement and plans to contest it, calling the ruling “unfounded in law.” In a statement to the media, Air Canada noted it had “successfully rebooked 200,000 passengers as a result of the labour disruption, which occurred during the busiest summer travel period, when there is limited seat availability.”
Furthermore, it argues that it did an adequate job of serving its customers. “We not only rebooked as many passengers as we reasonably could using some of the best technology available at the time, but also introduced voluntary policies to reimburse approximately $90 million in costs incurred from hotels, meals and expenses including bookings on other airlines or alternative transportation.”
Air Canada said the notice from CTA “implies that airlines should be held to a standard which is impossible to achieve,” and indicating it has filed a notice to review the notice of violation “on the basis that the CTA is required to take the diligence of airlines and real-world circumstances into account.”
Following the strike, Air Canada revealed that the labour disruption resulted in 3,200 flight cancellations and led to a $375-million loss of operating income, and a $430-million revenue hit.
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