Air Canada Agrees to Cover out of Pocket Expenses From Labor Strike

After an extremely disruptive and bitter labor battle, Air Canada operations have finally returned to normal. With operations returning to normal, the airline has made an update to its goodwill policy for customers impacted by the disruption.

Air Canada Will Reimburse Passengers for Out of Pocket Expenses

With Air Canada posed to return to a full network schedule on Friday, August 22, 2025, the company is now working to make passengers whole. The carrier has updated its goodwill policy for passengers impacted by the strike. According to the airline, it will cover reasonable additional accommodation and out-of-pocket expenses incurred by customers.

The updated, exceptional policy applies to customers whose original travel was disrupted between August 15 and 23, 2025 inclusive and builds on the flexible rebooking policy implemented earlier to cover transport costs.

Air Canada Aircraft at the terminal
Air Canada is reimbursing passengers for expenses incurred as a result of labor disruptions earlier this month.

The updated special travel expense policy will cover:

  • Customers who experienced cancellations and delays between August 15–23 and incurred reasonable expenses for hotel stays, meals, ground transportation, or other costs are eligible for reimbursement for their travelling party.
  • Claims must be supported with receipts and submitted through the airline’s customer relations portal.

The carrier notes that it will work to address claims as quickly as possible, however due to the anticipated volume it may require up to four to six weeks. Mark Nasr, Executive Vice President and Chief Operations Officer at Air Canada, said this about the expanded policy:

“Air Canada’s 40,000 coworkers, with their exceptional commitment and expertise, have allowed us to restore operations ahead of plan. We now expect to be operating very close to our normal schedule tomorrow. We deeply apologize to all customers whose travel plans were disrupted, and we’re committed to making things right for all customers — particularly those who were stranded during their trip. Earlier this week, we put in place a special commitment to reimburse out-of-pocket transportation costs, including on other airlines, rail, ground or ferries. Today, we are taking another step forward, delivering with our policies to make things right. This updated plan includes reimbursement for reasonable accommodation, meals, necessary transportation and other costs.”

Summary

Air Canada has updated its goodwill policy due to the recent disruptions from labor actions and will reimburse affected passengers for reasonable additional accommodation and out-of-pocket expenses. Though the carrier’s operations have mostly returned to normal, this policy is in effect for flights cancelled between August 15 and August 23, 2025.

(Image courtesy Air Canada)

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