Air Canada’s hopes of resuming flights on Sunday were dashed after nearly 10,000 striking flight attendants said they would defy a government order to return to work, according to media reports.
The Canadian Union of Public Employees (CUPE), which represents the cabin crew, confirmed members would remain off the job, prolonging a walkout that has already disrupted hundreds of flights.
The airline had planned to restart limited operations on Sunday afternoon after the Canada Industrial Relations Board (CIRB) directed workers back to duty. However, CUPE dismissed the ruling as unconstitutional, accusing the government of siding with the airline instead of facilitating a fair deal. Air Canada said Sunday it would postpone its restart plans, aiming now for a gradual resumption of flights beginning Monday evening.
The continued strike has left tens of thousands of passengers stranded at the height of the summer travel season, with Air Canada warning it could take several days to normalize operations even after flights resume. According to aviation data firm Cirium, the carrier was scheduled to operate more than 720 flights on Sunday alone.
For insurers, the situation is testing the limits of travel disruption coverage. Canadian aviation rules do not classify strikes as being within an airline’s control, meaning passengers are not automatically entitled to compensation for cancellations.
Air Canada has issued travel waivers allowing rebooking or credits, but has made clear it will not cover costs such as hotels and meals. That leaves travel insurance policies as the main safety net for travellers facing unexpected expenses, the reports said.
Industry experts say the scale of disruption could lead to a surge in claims for missed connections, non-refundable bookings, and emergency accommodation. Insurers will need to balance customer expectations with strict policy wording, which often excludes coverage for strikes if they are announced in advance. With CUPE issuing its 72-hour strike notice last week, policyholders may find themselves in a grey area.
United Airlines, which codeshares with Air Canada through the Star Alliance network, has also introduced waivers for affected passengers. But as capacity remains tight across North America, insurers may face further exposure if the strike drags on into the back-to-school period and business travel season.
As negotiations remain stalled and both sides hold firm, travellers are left in limbo, and insurers could become the next focal point in disputes over who bears the financial burden of one of the most disruptive airline strikes in Canada in years.
