Air Canada’s cargo operations remain heavily disrupted as a strike by more than 10,000 flight attendants entered its third day on Monday, despite two federal back-to-work orders. The labour action, led by the Canadian Union of Public Employees (CUPE), has forced the airline to suspend all passenger services at Air Canada and Air Canada Rouge, while severely curtailing freight capacity.
With most bellyhold cargo sidelined, Air Canada Cargo has shifted to a reduced freighter-only schedule, covering limited markets in the U.S., Mexico, South America, and Europe. Current freighter operations account for just 20–25% of the airline’s usual cargo throughput, leaving nearly three-quarters of volumes at risk of significant delays or cancellations.
“We are maintaining some critical flows, but not all geographies typically supported by our passenger network can be covered,” an Air Canada spokesperson said.
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The stopgap schedule includes four daily rotations on Toronto–Frankfurt and Toronto–Liège routes, with other freighter services operating one or two times per week. Air Canada’s all-cargo fleet comprises six Boeing 767 freighters, though two are currently undergoing maintenance. To bridge network gaps, the carrier has also expanded trucking services between freighter destinations and its main hubs.
Even before the strike escalated, Air Canada had begun winding down bookings for specialty shipments such as e-commerce parcels and pharmaceuticals, restricting them to freighter-only capacity. Existing bookings remain vulnerable to delays.
Although cargo accounted for just $253 million of Air Canada’s $5.6 billion in second-quarter revenue, the segment has been one of the airline’s strongest growth drivers, posting a 10% year-on-year increase. Executives had already forecast softer growth in the second half, citing a moderation in Asia-driven demand. With the strike now extending into a third day, Air Canada has suspended both its third-quarter and full-year earnings guidance.
The labour dispute, which officially began early Saturday, has also grounded hundreds of passenger flights, stranding as many as half a million travelers. Within hours of the work stoppage, the Canada Industrial Relations Board (CIRB) extended the airline’s expired 10-year collective agreement until a new deal is reached, declaring the strike unlawful. Despite government orders to return to work, CUPE has vowed to continue its protest.
“This is not over,” said CUPE national president Mark Hancock, accusing the airline of failing to address unpaid ground duties performed by cabin crew.
Air Canada has proposed a 17.2% wage increase over four years, but the union argues the offer lags behind industry peers and fails to resolve structural pay issues tied to pre-flight and post-landing tasks.
For shippers, the industrial action has created acute uncertainty across key trade lanes, particularly for time-sensitive cargo. With 75–80% of Air Canada’s freight capacity grounded, forwarders and exporters face significant challenges in securing uplift, underscoring the vulnerability of bellyhold-reliant cargo models when labour unrest strikes.
