Air Canada suspends third quarter and full year 2025 guidance

Air Canada suspends third quarter and full year 2025 guidance

MONTRÉAL, Aug. 18, 2025 /CNW/ - Air Canada is suspending its guidance for third quarter and full-year 2025 operating results due to the effects of the labour disruption by the Canadian Union of Public Employees (CUPE) and the resulting suspension of all flights.

On August 17, 2025, the Canadian Industrial Relations Board (CIRB) directed Air Canada to resume airline operations and for all Air Canada and Air Canada Rouge flight attendants to resume their duties by 14:00 EDT on August 17, 2025. The CIRB further ordered that the term of the collective agreement between Air Canada and CUPE that expired on March 31, 2025, be extended to include the period beginning on April 1, 2025 and ending on the day on which the new collective agreement between the parties comes into effect. The CIRB also imposed final binding arbitration to resolve the outstanding terms of the collective agreement. The arbitration procedure would be addressed in the coming days and weeks. 

Later, on August 17, 2025, CUPE illegally directed its flight attendant members to defy the direction from the CIRB to return to work resulting in Air Canada suspending its plan to resume limited flying by Air Canada and Air Canada Rouge.

Given the effects of the labour disruption and related impact on operations, Air Canada is suspending its guidance for third quarter and full-year 2025 operating results provided in its July 28, 2025 news release.  

Air Canada deeply regrets the impact the labour disruption has had on its customers, its stakeholders and the communities it serves.

About Air Canada

Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours, and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see Air Canada's TCFD disclosure. Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the US.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties, which are amplified in the current environment. Forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business of Air Canada. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including those identified in section 18 "Risk Factors" of Air Canada's 2024 MD&A and in section 14 "Risk Factors" of Air Canada's Second Quarter 2025 MD&A.  Any forward-looking statements contained in this news release represent Air Canada's expectations as of the date of this news release (or as of the date they are otherwise stated to be made) and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required under applicable securities regulations.

Internet: aircanada.com/investors  

SOURCE Air Canada