Air Canada has initiated the cancellation of hundreds of flights in anticipation of a potential strike by its unionized flight attendants, scheduled to commence early Saturday. The airline's decision to begin a phased suspension of operations aims to ensure an orderly shutdown of services, affecting approximately 100,000 passengers daily.

The labor dispute centers on demands for improved pay and compensation for unpaid work, with about 10,000 flight attendants represented by the Canadian Union of Public Employees . Despite government efforts to mediate, negotiations have stalled, leading Air Canada to issue a lockout notice in response to the union's 72-hour strike warning.

In preparation for the strike, Air Canada has canceled at least 27 flights and anticipates a total of around 500 cancellations by Friday. This disruption is expected to severely impact travel during the peak summer season and place additional strain on Canada's tourism sector.

Passengers affected by the cancellations are being offered full refunds and the option to rebook between August 21 and September 12 at no extra cost. However, rebooking options may be limited due to high demand during the summer months. Notably, compensation for food and lodging is not provided, as labor disputes are considered outside the airline's control.

The Canadian government, led by Jobs Minister Patty Hajdu, has urged both Air Canada and CUPE to return to the bargaining table to prevent the strike. While the union has rejected the airline's proposal for binding arbitration, preferring direct negotiations, the situation remains tense, with the potential for significant disruptions to air travel and the broader economy.