Air Canada has pulled its financial guidance for the third quarter and full year as much of its operation remains immobilised by an escalating cabin crew dispute.
The carrier has twice had to postpone a resumption of services, and the impasse appears no closer to resolution after the CUPE union, representing flight attendants, encouraged open defiance of a return-to-work order.
CUPE national president Mark Hancock and national secretary Candace Rennick stated on 18 August that the union – having taken the step to refuse the order – would not back down until a fair deal is reached.
The union says it is demonstrating “solidarity for the rights of flight attendants”, despite being accused by Air Canada of taking illegal action by directing cabin crew to refuse the return-to-work order from the Canadian Industrial Relations Board.
Air Canada says the effect of the disruption on its operations has prompted it to suspend financial guidance issued in late July.
It had indicated plans to hike capacity for the third quarter by 3.25-3.75% from the same period last year, and projected a full-year adjusted EBITDA of C$3.2-3.6 billion ($2.3-2.6 billion).
The strike has forced suspension of all Air Canada and Air Canada Rouge services since 16 August, although regional operations by Jazz and PAL are unaffected.
Air Canada says the services are cancelled until the afternoon of 19 August, but there is no immediate indication that any flights will resume given the continuing face-off which involves around 10,000 flight attendants.
