07:56 AM EDT, 08/13/2025 (MT Newswires) -- Air Canada ( ACDVF ) on Wednesday said that it has issued the statutory 72-hour lockout notice to the Canadian Union of Public Employees (CUPE) representing 10,000 flight attendants at Air Canada ( ACDVF ) and Air Canada Rouge after the union provided notice it intends to begin a strike.

"To provide customers certainty, Air Canada ( ACDVF ) will begin a phased wind down of most of its operations to be completed over the next three days. The airline has also sought government-directed arbitration to resolve the situation," a statement said.

Of note, Air Canada ( ACDVF ) and Air Canada Rouge flights will be gradually suspended over the next 72 hours, while Air Canada Express flights are not affected.

Air Canada ( ACDVF ) said customers whose flights are cancelled will be notified and can obtain a full refund. Customers without confirmed flights "should not go to the airport".

It added government-directed arbitration is being sought after CUPE negotiators rejected an offer that included a 38% compensation increase over four years and Air Canada's ( ACDVF ) arbitration offer.

AC was up 1.9% on the TSX yesterday.