Air Canada Provides Update on its Flight Attendant Tentative Agreement

We know the past few weeks have been difficult for our customers and for our employees. Air Canada is deeply grateful for the professionalism of our employees and for the patience and confidence our customers have shown as we worked through this process.

With the assistance of a mediator, on August 19, 2025, Air Canada and the Canadian Union of Public Employees’ Air Canada component (CUPE), representing our more than 10,000 flight attendants at Air Canada and Air Canada Rouge, reached a tentative agreement. The agreement was achieved without concessions from the union and included improvements to wages, pension and benefits, while also addressing work performed on the ground.

On August 27, 2025, CUPE began a ratification vote on this tentative agreement. The vote will close on September 6, 2025, with results expected shortly thereafter. While we remain hopeful the agreement will be ratified, there is a possibility that it will not be accepted by members.

During mediation, Air Canada and CUPE mutually agreed in advance that if the agreement was not ratified, the wage portion would be referred to mediation and then, if no agreement was reached at that stage, to arbitration. This ensures that any outstanding wage matters are resolved fairly, without disruption to our operations. Air Canada is fully committed to the mediation and arbitration process, if the tentative agreement is not ratified.

Whatever the outcome of the vote, there will be no strike or lockout. Our flights will continue to operate, thanks to the dedication of our employees and the trust of our customers. Together, we will keep Canadians moving with confidence and our customers can plan, book and travel with full confidence.

 Collective Agreement

• The tentative agreement will make Air Canada flight attendants the best compensated in Canada. Total compensation would increase by around 40 per cent over the four-year term of the contract. (See details on wages below)
• For the first time ever in over 30 years of negotiations with the company, CUPE asked that pay for ground duties be specifically accounted for in the flight attendant contract. Previously, pay for ground duties was an element of overall compensation. The new contract contains specific provisions for ground pay that are industry leading in Canada. (See below)
• The tentative agreement also contains improvements to pensions, working conditions, benefits and other work life enhancements.

Wages
 

As structured, under the tentative agreement, flight attendants would receive the following wage increases, retroactive to April 1, 2025

• Year 1 (April 1, 2025)           8-12% depending on length of service
• Year 2 (April 1, 2026)           3%
• Year 3 (April 1, 2027)           2.5%
• Year 4 (April 1, 2028)           2.75%

Ground pay

Under the tentative agreement, flight attendants are now separately paid for work performed on the ground. Most other carriers continue to use the approach CUPE and Air Canada had followed previously for compensating their flight attendants for this work. For flight attendants on narrow body aircraft, the contract provides for 60 minutes paid at 50 per cent of the regular hourly wage in the first year of the agreement, gradually rising to 70 per cent of the hourly wage in the fourth year of the contract. For larger, wide body aircraft, the contract provides for 70 minutes paid at the same rates.

Examples

The chart below illustrates the progression of annual pay for a flight attendant who would have joined Air Canada one day before the first day of the new collective bargaining agreement taking effect. The calculation is based on a typical 12-month average of 79 hours per month (flying time credits and pay for training), plus the proposed ground pay, but does not include any other premiums or incentive awards.

The second chart below shows the entry level wages in 2025 and 2028 for Flight Attendants at Air Canada and Air Canada Rouge, as well the wages for an Air Canada Flight Attendant with 10 years of service and a Service Director on a Boeing 777 or 787 in 2028.The calculation is based on a typical 12-month average of 79 hours per month for Air Canada Flight Attendants and Service Directors and 87 hours per month for Air Canada Rouge Flight Attendants (flying time credits and pay for training), plus the proposed ground pay, but does not include any other premiums or incentive awards.

A majority of Air Canada Rouge flight attendants transfer to Air Canada within a few years, and all flight attendants are eligible to become service directors.

Corporate Communications: August 29, 2025