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Today • 8 min read • AC Stock Analysis
Air Canada, Canada's largest airline, is facing a major labor crisis. Contract talks with the union representing 10,000 flight attendants collapsed after the rejection of binding arbitration. The union has signaled it may issue a 72-hour strike notice at any time, raising the risk of widespread flight cancellations during the peak summer travel season.
The timing is critical. August is one of Air Canada's busiest months, and a strike could disrupt thousands of flights, impact tourism, and erode customer confidence. For investors, the situation adds short-term uncertainty at a time when Air Canada is pushing to grow premium services and expand high-yield routes.
A prolonged work stoppage could hit revenue, raise operational costs, and weigh on the stock price. Analysts have projected a 30% upside for Air Canada if operations remain stable — but that scenario is now clouded by the potential for disruption. Government intervention remains a possibility if the strike proceeds, but it could reshape long-term labor relations.
While the company has offered compensation increases over the next four years, flight attendants say the proposals don't address key issues such as unpaid safety-related duties and the broader cost-of-living pressures impacting workers.
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