Here’s what passengers need to know about their rights to compensation and what their travel insurance can cover.
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Air Canada began gradually restarting operations yesterday after reaching an agreement with the union representing 10,000 flight attendants to end their strike.
The walkout has disrupted the plans of more than half a million travellers after Canada’s flag carrier began grounding flights on 14 August.
Flights are still expected to be affected over the coming days, with the airline requesting passengers only head to the airport if they have confirmed the status of their flight.
Given the volume of passengers still waiting to be rebooked onto alternative flights, Air Canada is offering a flexible rebooking policy if passengers choose to make their own alternative travel arrangements, including with other airlines.
Here’s what passengers need to know about their rights to refunds and compensation, and what their travel insurance can cover.
Air Canada reaches agreement with union
The union announced the agreement early on Tuesday after resuming talks with Air Canada late on Monday for the first time since the strike began over the weekend.
Flight attendants walked off the job early Saturday after turning down the airline’s request to enter into government-directed arbitration, which allows a third-party mediator to decide the terms of a new contract.
The union said the agreement will guarantee pay for members who work while planes are on the ground, resolving one of the major issues that drove the strike.
“Unpaid work is over. We have reclaimed our voice and our power,” the union said in a statement.
“When our rights were taken away, we stood strong, we fought back – and we secured a tentative agreement that our members can vote on.”
Have Air Canada flights resumed?
Chief executive Michael Rousseau said restarting a major carrier is a complex undertaking and said resuming regular service may require seven to 10 days.
Some flights will be cancelled until the schedule is stabilised.
“Full restoration may require a week or more, so we ask for our customers’ patience and understanding over the coming days,” Rousseau said in a statement.
Toronto’s Pearson International Airport, Canada’s largest, said it will deploy additional staff to assist passengers and support startup operations.
Air Canada says passengers can find information about their flight or rebooking on their website, and they will also receive updates via text and email.
According to the airline’s website, 76,560 customers are expected to fly today, with 21,739 rebooked from flights disrupted yesterday.
If you are scheduled to travel, you should check the status of your flight online or on your Air Canada mobile app before heading to the airport.
The website provides updates on the travel status of Air Canada’s three main hubs – Vancouver, Toronto and Montréal – which are currently all experiencing ‘moderate delays’.
What are my rights if my Air Canada flight is cancelled?
Air Canada operates around 700 flights per day. The airline estimated on Monday that 500,000 customers would be affected by flight cancellations.
Aviation analytics firm Cirium said that as of Monday afternoon, Air Canada had called off at least 1,219 domestic flights and 1,339 international flights since last Thursday, when the carrier began gradually suspending its operations ahead of the strike and lockout that began early Saturday.
If your flight was due to start in the EU or UK and is cancelled, Air Canada is obliged to find an alternative way to get you to your destination.
“Customers will be notified of alternative travel options that are identified for them. However, given other carriers are already very full due to the summer travel peak, securing such capacity will take time and, in many cases, will not be immediately possible,” the airline said in a statement.
Air Canada says it “has made arrangements with other Canadian and foreign carriers to provide customers alternative travel options to the extent possible”.
Hundreds of thousands of passengers remain stranded in Canada or abroad. Those waiting for flights can be expected to be provided with meals and accommodation where necessary.
Passengers whose flights are impacted will also be eligible to request a full refund on the airline’s website or mobile app, according to Air Canada.
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As for compensation, if Air Canada cannot rebook you on an alternative flight within four hours of the original timing, you are entitled to €600 – the sum for a final destination outside the EU/EEA and distance greater than 3500 km.
If your flight originated in Canada, you are covered by the Air Passenger Protection Regulations (APPR).
This means that the airline must ensure that you complete your journey, although no time frame is specified.
Given the volume of travellers needing to be rebooked on a new flight, Air Canada is advising passengers to cancel and request a refund instead.
Travellers left waiting to rebook on a new flight are not entitled to a duty of care as, under Canadian regulations, it is not obligatory during “a labour disruption within the carrier”.
Air Canada offers flexible rebooking for cancelled flights
Given the volume of passengers still waiting to be rebooked onto alternative flights, Air Canada is offering a flexible rebooking policy should travellers choose to make their own arrangements.
For travel between 15 and 22 August 2025, you can move your flight to another Air Canada or Air Canada Rouge flight, for travel between 23 August and 30 September 2025, in the same cabin for free, provided you do so at least two hours prior to your original flight date and time by modifying your itinerary.
If you prefer to book your own alternative transportation, you may be eligible exceptionally, due to the significant impact of the labour disruption, to reimbursement of a reasonable fare on another airline within 5 days of your original departure date, if:
you had an Air Canada or Air Canada Rouge flight scheduled to depart between 15 and 23 August that was cancelled, and
you received an email from Air Canada stating they were unable to rebook you, or you were offered alternative flight options that depart more than 5 days from your original departure
you choose a flight in the same or lower cabin to your original flight
your flights are between the same origin and destination (including sister cities) with the same named customers. You can change connecting points or add/remove connections, as long as you choose a continuous journey.
you can also claim for alternate transportation options to get you between your original origin and destination (bus, ferry, car etc.)
you must have booked the most reasonable and economical option(s) with your alternative travel, and ensuring that you reach your destination as soon as possible
If you prefer to cancel your ticket:
You can request a refund for the unused portion of your ticket or hold the value of your ticket in your AC Wallet as a Future Travel Credit, for travel dates between 15 and 21 August, 2025.
Can I claim on travel insurance if my flight is cancelled?
You must seek a solution with the airline first; travel insurance is secondary to what the airline can or can’t do for you (and proof will be required).
“You will have to accept what the airline offers and then file a claim for what other costs you incur (like hotel stays, food, extra transportation, etc.),” explains Christina Tunnah, Head of the Americas for World Nomads Travel Insurance.
“Think of travel insurance as a safety net for the expenses and hassles the airline can’t or won’t cover.”
Travellers may be entitled to compensation if their travel insurance policy includes coverage for trip interruption or cancellation.
In this case, you should make sure you keep all relevant paperwork, including receipts, boarding passes, and airline communications, in case you need to make a claim.
“The more evidence or paperwork you provide, the smoother the process will be to assess your eligibility for reimbursement,” says Tunnah.
Travel insurance policies often also cover meals, hotels, or transport during extended disruptions.
“Before making the restaurant reservation or booking the hotel, you’ll want to review your benefits and the maximum amount you can claim for,” Tunnah advises.
