Air Canada (TSE:AC) is warning of a major service disruption as the airline’s flight attendants prepare to go on strike.
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The union representing about 10,000 flight attendants at Air Canada could issue a 72-hour strike notice as early as 12:01 a.m. Eastern Time on Aug. 13. That would enable the flight attendants to walk off the job this coming Saturday (Aug. 16).
A work stoppage caused by the flight attendants’ strike would cause major headaches for travelers both to Canada and within the country given the Montreal-based carrier’s dominant position in the Canadian aviation industry.
An Impasse
A potential strike by the flight attendants arrives after the Canadian Union of Public Employees (CUPE) says its collective bargaining with Air Canada has reached an impasse. The union representing the flight attendants says they remain far apart with the airline on issues such as wages.
Air Canada’s management team says they offered the flight attendants a 32.5% wage increase, which the union rejected. Air Canada’s flight attendants voted 99.7% in favor of a strike. AC stock has declined 12% this year.
Is AC Stock a Buy?
Air Canada’s stock has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 10 Buy and three Hold recommendations issued in the last three months. The average AC price target of C$25.80 implies 32.12% upside from current levels.
