After carefully planning a summer vacation, the last thing on your mind should be finding alternate transportation. But some travellers could be left scrambling as the clock ticks down to a possible work stoppage at Air Canada.
The airline says it will gradually suspend its flights starting Thursday after the union representing the airline's 10,000 flight attendants and the airline itself issued 72-hour strike and lockout notices, respectively. They are set to take effect around 1 a.m. ET on Saturday.
It can be challenging for customers who are stuck in the crossfire, dealing with delays and cancellations. But travellers may be in luck if they booked their tickets with a credit card that has built-in travel insurance — with one caveat.
"You have to make sure that when you're booking it, it isn't past the date where many of (the credit card companies) would view it as a known event," said Will McAleer, executive director of the Travel Health Insurance Association.
That means as long as the tickets were booked before a potential labour dispute became apparent, the credit card travel insurance would cover it under their trip cancellation policy, McAleer explained.
If the ticket was booked via credit card after the strike became foreseeable, the disruption-related costs wouldn't be covered, he added.
But it's important to read the fine print of your credit card's travel insurance policy, said Natasha Macmillan, senior business director of everyday banking at Ratehub.ca.
Macmillan said consumers need to double-check if labour dispute-related cancellations or delays are covered. Often, the travel policy would specify exclusions such as delays caused by government actions, a pandemic or labour disruption.
She said labour dispute coverage can also vary depending on the card type and card provider. For example, some high-end credit cards may cover disruptions from labour strikes even when the tickets were booked after it became a foreseeable event.
Macmillan said travellers should also understand their coverage limits and payout rules.
"There tend to be very specific requirements," she said.
For example, some credit card travel insurance may cover up to $5,000 for a trip cancellation, while other cards may have a lower limit.
Besides the maximum coverage, McAleer said travellers need to determine if the policy is sufficient for the trip — is it less than or more than what you've paid per traveller.
Consumers also need to make sure they meet the terms and conditions of the credit card policy, which could include paying for a large portion of the trip through the credit card, he added.
McAleer said if there's a trip interruption when a traveller is already in transit, the airlines usually provide some services, such as meals and hotel stays.
During labour disruptions, Steven Harris, a licensed insurance broker and LowestRates.ca expert, said while passengers are generally entitled to reimbursement for accommodations, meals and rebooking, airlines are not obligated to compensate for additional costs such as prepaid hotel bookings unless they are specifically covered by the airline's policy or a travel insurance policy.
Air Canada has said customers affected by flight cancellations will be eligible for a full refund. It has also made arrangements with other carriers to provide alternative options, but warns it could take time to secure capacity given other airlines are already full due to the summer travel peak.
Experts say credit card insurance policies come down to understanding the coverage and doing your homework ahead of time.
"We all know there's a reasonable chance this could happen," he said. "If I was travelling on those days and likely going to be impacted over that time, I would make that call."
McAleer said it's important to double-check with the credit card administrator to see if the policy covers labour strikes.
"I'd want to call my credit card issuer and see what my protection was likely going to do," he said.
"Prepare yourself for any surprise."
This report by The Canadian Press was first published Aug. 13, 2025.
Ritika Dubey, The Canadian Press
