TORONTO — Business groups are warning of the potential broader impacts a shutdown at Air Canada would bring as a Saturday work stoppage looms.
"Taking out the major national airline is just brutal, particularly right now," said Dan Kelly, president of the Canadian Federation of Independent Business.
Air Canada has already started to cancel flights, warning some 500 would be cut Friday, as more than 10,000 flight attendants are poised to walk off the job around 1 a.m. ET on Saturday if the two sides can't reach a deal.
The airline and union have blamed each other for the impasse.
A shutdown would mean disrupted travel for businesses trying to find new customers and trade partners amid U.S. tariffs, Kelly said.
"Tons of businesses are working hard to diversify their markets within Canada, or to build new trade connections overseas and with other trading partners, and this could have a very direct impact on that," Kelly said.
Even a brief shutdown would have wide-reaching economic consequences, Toronto Region Board of Trade chief executive Giles Gherson said in a statement Friday.
He pointed to the 130,000 travellers who fly on Air Canada daily, plus cargo operations, for the importance of its operations on the economy.
"A disruptive work stoppage is occurring at precisely the moment when Canada is urgently seeking to reboot our economy and enhance our competitive position against mounting trade pressures."
Along with passenger travel, a potential shutdown is affecting cargo shipments, with Air Canada warning any existing bookings are subject to delay or cancellation.
It says it is no longer accepting new bookings for a variety of cargo divisions including AC Horses, AC Pharmacair and AC eCommerce, while its AC Fresh division is still allowing bookings to several European capitals.
The airline says it is putting in place a modified freighter schedule to mitigate some of the disruption. It says the move will protect about 20 to 25 per cent of usual volumes, but not to all destinations usually served by Air Canada's passenger network.
Earlier this week the Canadian Chamber of Commerce warned about the effects of a shutdown on cargo shipping as well as air travel, and urged Ottawa to intervene if needed to avoid a prolonged disruption.
This report by The Canadian Press was first published Aug. 15, 2025.
Companies in this story: (TSX:AC)
Ian Bickis, The Canadian Press
