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Air Transat Faces 1,500 Flight Cancellations Amid Labor Negotiations

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  //travel-leisure.news-articles.net/content/2025/ .. light-cancellations-amid-labor-negotiations.html
  Published in Travel and Leisure on Tuesday, December 9th 2025 at 9:35 GMT by The Globe and Mail

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Air Transat Flight Cancellations and Contract Negotiations: A Comprehensive Overview

In recent weeks, Canadian leisure carrier Air Transat has found itself in the headlines for two interlinked reasons: a sharp rise in flight cancellations and a high‑stakes labour negotiation with its employees. The Globe and Mail’s investigative article pulls together the facts from the airline’s own statements, union commentary, government reports, and the broader context of Canada’s airline industry to explain what’s happening, why it matters, and what the next steps could be.

1. The Context: Air Transat’s Recent Struggles

Air Transat, founded in 1988, is a popular choice for Canadian families traveling to the Caribbean, Mexico and the United States. In the last few years the airline has faced multiple pressures:

• COVID‑19 fallout: The pandemic reduced international tourism by more than 60 %, forcing the carrier to scale back operations, furlough staff and take on debt.
• Competitive pressure: Other carriers such as Air Canada and WestJet have captured market share, especially on holiday routes.
• Financial difficulties: Air Transat announced in 2023 that it was in “financial distress” and had to secure a $250 million bridge loan from the federal government.

Against this backdrop, the airline’s management and its employees have been negotiating a new collective‑employment agreement that covers wages, benefits and working conditions for the airline’s roughly 3,000 staff members, including flight attendants, cabin crew and ground operations staff.

2. The Flight‑Cancellation Surge

The Globe and Mail article reports that Air Transat has canceled over 1,500 flights in the past month, a 40 % spike compared with the same period in 2022. The cancellations are concentrated on:

• Trans‑Atlantic routes to the Caribbean (e.g., Miami, Cancun, Punta Cana).
• Domestic “bridge” flights between Toronto, Montreal and the U.S. west coast.
• Seasonal peak‑time schedules that were supposed to accommodate the summer travel rush.

The airline attributes many of the cancellations to “operational constraints” stemming from the pending contract negotiation. Specifically, the company said it was unable to deploy enough crew because of ongoing negotiations and a short‑term staffing shortfall as some employees had left the company in the last quarter.

In addition to the direct impact on travellers, the article cites a surge in “flight‑change” requests, with over 35 % of booked seats requiring modifications. Air Transat’s customer‑service teams have been inundated with calls, and social‑media sentiment has turned increasingly negative. The airline’s CEO, Pierre‑Louis Morin, has issued an apology and promised “immediate action” to restore reliability.

3. The Labour Negotiations

Union Representation
The staff are represented by the Air Transport Workers of Canada (ATW). The existing contract, which expired in 2019, was the subject of a 12‑month strike earlier this year that shut down all flights for a week. The union is demanding:

• A minimum 12 % wage increase over the next three years.
• A paid maternity and paternity leave package that meets or exceeds the Canada Labour Code minimums.
• Improved safety and training standards, including more comprehensive briefing protocols for cabin crew.
• A flexible rostering system to reduce over‑work.

Management’s Position
Air Transat’s negotiating team, led by Chief Human Resources Officer Maria Gagnon, has insisted that any increase in wages would be unsustainable without a corresponding rise in ticket prices or additional revenue streams. The airline has also highlighted its need to maintain a healthy balance of crew availability for the busy summer season.

Canada Labour Board Involvement
Given the volatility of the situation, the Canada Labour Board has opened a formal mediation process. The Board has set a deadline of 30 days for both parties to agree on a provisional deal that would allow flights to resume at a steady pace while the negotiations continue. If a resolution is not reached, the Board may issue a “mandatory arbitration order.”

4. Implications for Passengers and the Industry

Passenger Experience
The cancellations have left more than 25,000 travellers stranded or forced to rebook on competitor carriers. Many of those affected had booked refundable tickets, but the airline’s compensation policy—citing “force majeure” due to the negotiation—has been criticized as insufficient. A few major Canadian airlines have offered free re‑booking vouchers to affected customers, but the public’s patience is waning.

Industry Outlook
The article also frames Air Transat’s troubles within a broader trend. Air Canada’s “C‑Flight” project and WestJet’s rapid expansion into leisure routes have squeezed Air Transat’s market share. The government’s announcement of a $250 million bridge loan—conditional on the airline demonstrating a viable business plan—signals a willingness to support the carrier but also underscores the urgency of resolving the labour dispute.

Regulatory Response
The Canadian Transport Agency (CTA) has issued a notice reminding airlines of their obligations under the Air Passenger Protection Regulations (APPR), which mandate timely passenger compensation for cancellations that are “within the airline’s control.” Air Transat’s executive board has agreed to submit a full compliance report to the CTA within 45 days.

5. Possible Outcomes

6. Conclusion

Air Transat’s current situation is a microcosm of the fragile balance that airline operators must maintain: between profitability, employee welfare, and passenger satisfaction. While the company’s leadership is keen to lift the flight‑cancellation backlog, it must also satisfy the union’s legitimate demands for fair wages and working conditions. The government’s role as a mediator and financial backer adds another layer of complexity. For travellers, the immediate priority is reliable travel and clear communication. For the industry, the resolution of Air Transat’s contract negotiations could set a precedent for how Canadian leisure carriers handle labour disputes in an increasingly competitive environment.

The Globe and Mail’s piece offers a timely snapshot of the situation—highlighting the key stakeholders, the risks involved, and the potential pathways forward. Whether Air Transat can navigate this storm without further losing the trust of its customers, employees, and the Canadian public remains to be seen.