Air Canada (TSX:AC.B) has withdrawn its third quarter and full-year guidance, as a labor disruption by Canadian Union of Public Employees (CUPE) flight attendants has seen all of the airline's flights suspended.
The airline had forecasted an increase in capacity for the third quarter of 3.25% to 3.75% compared to the same quarter the previous year, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) between $3.2 billion to $3.6 billion for the full year.
More than 10,000 Air Canada flight attendants began striking early Saturday due to disputes over wages and work schedules, among other issues.
The Canada Industrial Relations Board (CIRB) has declared the strike illegal and ordered the flight attendants back to work on Sunday. The union has defied this order and instructed members to continue striking.
Prime Minister Mark Carney on Monday expressed disappointment that negotiations failed to produce an agreement before the strike.
He acknowledged the disruption impacting hundreds of thousands of Canadians and visitors and urged both the union and Air Canada to resolve the dispute quickly.
About 500,000 customers have been impacted by flight cancellations so far as a result of the strike, Air Canada said.
Shares of Air Canada were down 1.4% at C$19 in the early afternoon on Monday, having fallen more than 12% in the year to date.