Air Canada Strike Highlights Growing Tensions Over Flight Attendant Pay

The four-day strike by Air Canada flight attendants that stranded more than half a million travelers has ended with a tentative deal, but the impact of the work stoppage is expected to ripple far beyond Canada. At the center of the dispute is a pay system that many flight attendants argue is outdated and unfair: being compensated only while planes are in motion, leaving critical portions of their workday unpaid.

PHOTO CREDIT: MARK HARKIN / FLICKR (CC BY 2.0)

The Issue of Unpaid Labor

Unlike many professions, flight attendants do not earn wages for all the time they are on duty. Boarding passengers, performing safety demonstrations, helping families, managing delays, and handling deplaning are essential responsibilities, but airlines traditionally do not count those hours as paid time. Attendants are typically guaranteed a minimum number of monthly flight hours, but critics of the system argue it still leaves large amounts of uncompensated work.

In Air Canada’s case, union representatives say that workload increases, stagnant wages, and inflation have made this issue impossible to ignore. The tentative agreement reached this week reportedly addresses “ground pay,” though specific details have not been released. Analysts caution that while this could represent progress for flight attendants, it also raises questions about how airlines will manage higher structural costs.

A North American Trend

The Air Canada strike mirrors tensions already brewing in the United States. At American Airlines, Alaska Airlines, and Southwest, flight attendants rejected contract proposals in 2023, pointing to the same problem of unpaid ground work. United Airlines attendants voted down a $6 billion tentative agreement in July, citing similar frustrations.

Because of U.S. labor laws, American flight attendants cannot strike without approval from the National Mediation Board, which has so far kept U.S. carriers from experiencing the same level of disruption seen in Canada. But the widespread dissatisfaction suggests negotiations will remain contentious.

Some carriers have begun to respond. Delta Air Lines, which does not have a unionized flight attendant workforce, introduced partial boarding pay in 2022, in part to head off unionization efforts. American and Alaska Airlines have since included boarding compensation in their latest agreements.

Rising Costs for Airlines

For airlines, labor is the second-largest expense after fuel. Any changes to compensation structures have significant financial implications. Analysts estimate that Air Canada’s deal could add up to C$140 million in annual costs. American’s new contract will increase its labor costs by more than $4 billion over the next five years.

Those expenses are hitting carriers at a time of economic uncertainty. Air Canada recently reported a nearly 40% year-on-year profit decline, with weaker U.S. passenger traffic and broader trade tensions weighing on results. American Airlines, meanwhile, has already cited higher labor costs as a factor behind its lower-than-expected margins.

What Comes Next

Industry leaders acknowledge that the current system is under pressure. Air Canada CEO Michael Rousseau said this week that compensation models need to be reevaluated, noting that the industry should be “open to change.” Analysts warn that failing to address worker frustrations risks additional strikes and labor showdowns, though aggressive concessions could drive up ticket prices and reduce competitiveness.

Unions see the Air Canada outcome as momentum for their cause. Sara Nelson, international president of the Association of Flight Attendants, called the strike “an inspiration” for workers across North America. At the same time, some industry experts caution that prolonged labor disruptions could erode public goodwill and damage the financial stability of carriers already facing thin profit margins.

A Broader Industry Debate

The Air Canada strike underscores a difficult question for the airline industry: how to balance fair pay for frontline workers with the need to keep travel affordable for consumers. Flight attendants have successfully drawn attention to unpaid labor, but resolving the issue will require airlines to rethink decades-old compensation practices in an industry known for volatility.

With contract talks looming at major U.S. carriers later this year, the outcome in Canada may set a precedent. If boarding and ground pay become standard, airlines across North America will need to prepare for rising labor costs—while passengers could face higher fares as a result.

For now, Air Canada flights are back in the air, but the debate over flight attendant pay is unlikely to remain grounded. The strike may have ended, but the fight over compensation models is only taking off.