Air Canada lowers 2025 forecast after $375M cost from flight attendant strike

Air Canada says a three-day flight attendant strike earlier this summer will cost the airline about $375 million, prompting it to lower its financial guidance for the year.

In a statement this week, the airline said the labour disruption reduced operating income and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by an estimated $375M.

The airline now expects to generate $2.9 billion to $3.1 billion in adjusted EBITDA for 2025, down from the $3.2 billion to $3.6 billion range it projected before suspending its outlook in August.

Air Canada said three factors combined to create the hit: 

• About $430M in lost revenue from refunds, customer compensation and softer bookings
• Roughly $90M in additional costs tied to reimbursements and labour expenses
• An offsetting $145M in savings, largely from lower fuel prices

For the third quarter, Air Canada anticipates capacity will fall about 2% year over year, reflecting the cancellation of more than 3,200 flights, with operating income between $250M and $300M.

The strike, which ended Aug. 19, caused a cascade of schedule disruptions as operations ramped back up. 

Earlier this month, flight attendants voted down a tentative agreement that would have increased pay and clarified compensation for time spent on the ground. 

Both sides have agreed to send the wage issue to mediation.

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