Montreal-based Air Transat began gradually suspending operations on December 8, 2025, after the union representing its 750 pilots issued a 72-hour strike notice, threatening a complete shutdown of one of Canada’s largest vacation airlines.

The airline announced it would begin canceling flights on Monday, December 8, with a complete suspension of operations by Tuesday, December 9, to prevent crews, passengers, and aircraft from being stranded abroad if pilots walk off the job on Wednesday, December 11.

The Labor Dispute

The Air Line Pilots Association issued the strike notice after nearly a year of negotiations to replace a 2015 contract with industry-standard pay, benefits, work rules, and job security. A total of 99% of Air Transat’s pilots voted to authorize their leadership to declare a strike.

Air Transat pilots currently earn an average of CAD $152,479 (approximately USD $112,803) per year, according to industry salary data. The airline offered pilots a 59% salary increase over five years, which would potentially bring average pilot salaries to around CAD $242,000 by the end of the contract period.

However, the union rejected the offer, arguing it fails to address cost of living increases that have accumulated over the decade since the 2015 contract took effect, and does not resolve issues around scheduling and work conditions.

“No pilot wants to strike, but Air Transat management has left us no choice,” Capt. Bradley Small, chair of the Air Transat Master Executive Council, said in a statement. “Months of unproductive bargaining ends now. If we cannot reach an agreement, management will be responsible for every cancelled flight and stranded passenger.”

Airline Calls Strike Notice “Premature”

Air Transat pushed back against the union’s characterization of negotiations. Julie Lamontagne, the airline’s Chief Human Resources and Communications Officer, called the strike notice “premature given the progress made at the bargaining table and the generous offers made by Air Transat.”

“It is regrettable that the union has expressed such indifference toward Transat, its employees and clients by choosing the path of a strike at this time of year,” Lamontagne said, characterizing the decision as “reckless” and not reflective of the state of negotiations.

The airline said in its statement that negotiations have shown progress and that it has made “generous” contract offers. Both sides indicated an agreement could still be reached before the Wednesday strike deadline.

Impact on Travelers

Air Transat operates 70 to 75 flights daily from major hubs at Toronto Pearson and Montreal-Pierre Elliott Trudeau airports to destinations including Punta Cana, Cancún, Havana, Miami, and Fort Lauderdale, as well as routes to Europe, South America, and North Africa.

The airline services 10 domestic destinations and 63 international destinations across 33 countries, primarily focusing on vacation travel to the Caribbean, Florida’s east coast, Europe, and North Africa.

Travelers at Toronto’s Pearson International Airport expressed concern about being stranded. “I’m afraid that I won’t be able to come back home,” Clara Yoon, who was planning to return from the Dominican Republic during the potential strike period, told CBC News.

Some passengers canceled trips or purchased return flights on other airlines. Others took the disruption in stride. “They’re flying today, so I’m good to get there. And if I have to make other arrangements to get back, I make other arrangements,” traveler Robert Rowarth said.

Passenger Rights and Compensation

Air Passenger Rights, an advocacy organization, said passengers may be entitled to up to $1,000 in compensation if their flight is canceled by Air Transat before a strike begins and within 14 days of the flight itself.

The organization disputed Air Transat’s framing that flight suspensions are caused by labor disruptions, arguing instead that the cancellations “are akin to the airline deciding not to operate a flight for purely economic reasons.”

Air Transat said it will contact passengers with disrupted flights and offer refunds. The airline is also working to repatriate passengers already abroad “to prevent them from being stranded if the strike occurs.”

Broader Context of Canadian Airline Labor Disputes

The Air Transat situation follows a pattern of labor unrest at Canadian airlines in 2025. In August, Air Canada canceled over 700 flights during a four-day period as its roughly 10,000 flight attendants rejected a 38% pay raise over four years before eventually reaching an agreement.

Canada’s Minister of Jobs and Families Patty Hajdu said through a spokesperson that the minister “is monitoring the situation closely” and urged both sides to reach an agreement. “We understand how the situation can be stressful for Canadians as the holidays approach,” the spokesperson said. “Federal mediators continue to work with the parties.”

Operating since 1987, Air Transat is one of Canada’s three largest airlines and a major vacation carrier for travelers on the country’s East Coast seeking warm-weather destinations during winter months.