Air Canada lockout could create over $40M in delayed compensation claims
As Air Canada cancels hundreds of flights in anticipation of a possible flight attendant’s strike this weekend, an airline compensation company says this could result in millions of dollars of delayed claims.
AirAdvisor, a company that helps flyers claim fair compensation, predicts that the airline’s lockout could generate over $40 million in potential compensation claims and “push the passenger compensation system to breaking point.”
After failed negotiations, the Canadian Union of Public Employees (CUPE), which represents 10,000 flight attendants at Air Canada and Air Canada Rouge, provided notice that it plans to begin a strike as early as 1 a.m. EDT on Saturday, Aug. 16.
In response, the carrier issued a 72-hour lockout notice and began cancelling flights on Thursday, continuing into Friday, with plans for a complete pause of Air Canada and Air Canada Rouge flights on Saturday, Aug. 16.
Ryken Papy/Shutterstock
According to AirAdvisor, historical data shows that the average Air Canada payout is $645. It adds that of the travellers who submit a compensation claim, an average of 30 per cent are eligible, and 82 per cent of passengers successfully receive a payout.
“Industry analysts warn this surge will collide with a Canadian Transportation Agency (CTA) complaints system already facing historic delays,” reads a notice from the company.
In an email to Daily Hive, the CTA says the current backlog of air travel complaints is at roughly 85,000. It notes that the number of complaints it receives is not predictable.
“In other words, the backlog is driven not only by the number of cases closed, but also by the number of complaints being submitted, which has continued to increase significantly in recent years,” explained a CTA spokesperson.
The agency provided a table showing the substantial increase in complaints from 2018 to 2025. As of Aug. 14, 13,454 Canadians have submitted complaints to the CTA. The average weekly number of air travel complaints submitted to the agency since Oct. 1, 2023, is 554.
Canadian Transportation Agency
According to AirAdvisor, under the current system, airline customers could wait more than two years for a decision.
“The current process is unnecessarily complex and heavily tilted in favour of the airlines. It allows them to routinely deny legitimate claims, knowing most passengers don’t have the time, resources, or patience to fight a battle that can drag on for years,” stated Anton Radchenko, air passenger advocate and CEO of AirAdvisor. “Without urgent reform, the lockout will add thousands more frustrated passengers to an already broken system.”
The company says its recent analysis shows complaint volumes against Air Canada have risen 38 per cent in the past year, with 82 per cent of valid claims decided in favour of customers. It adds that the resolution times through the CTA are more than 1,000 per cent longer than through private claims services, often exceeding 100 weeks compared to eight to 12 weeks.
However, the CTA says that the Complaints Resolution Office (CRO) has been delivering a more streamlined, automated approach to resolving air travel complaints since it launched in September 2023.
“During 2024-2025, its first full fiscal year, the CRO closed over 33,600 complaints, more than ever before,” stated the spokesperson. “This represents a 201 per cent increase in comparison to the last full fiscal year preceding the creation of the CRO, when 11,158 cases were closed.”
Still, AirAdvisor warns the influx of new claims amid a possible Air Canada strike could further deny passengers “timely justice.”
“A lockout of this scale should be the wake-up call for regulators to simplify the system, strengthen enforcement, and ensure that airlines are held accountable from day one,” added Radchenko.
What Air Canada customers should do amid the possible strike
Radchenko advises customers affected by the lockout to document everything, including boarding passes, receipts, and any communication from the airline, as this evidence will be essential when filing a claim.
He also recommended that travellers consider using a passenger rights service rather than waiting years through the CTA backlog.
According to Air Canada, as of noon EDT on Friday, 294 flights have been cancelled and 55,726 travellers have been impacted. If you’re affected by the preemptive flight cancellations and aren’t sure what your options are, check out this guide.
Daily Hive has reached out to Air Canada for a response to AirAdvisor’s predictions. We will update this story when we receive a response.