Air Canada has agreed an 11th hour deal with pilots to prevent a strike that threatened a total shutdown of operations from this week.
The airline said on Sunday that it had reached a tentative, four-year collective agreement with the Canada’s Air Line Pilots Association (Alpa).
The union represents more than 5,200 pilots at Air Canada and low-cost arm Air Canada Rouge.
The new agreement “recognises the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline”.
However, the terms of the new agreement will remain confidential pending a ratification vote by the Alpa membership, expected to be completed over the next month, and approval by the Air Canada board of directors.
Air Canada was preparing to progressively cancel flights over three days and to completely shut down its operations as early as September 18.
Air Canada and Air Canada Rouge operate nearly 670 flights a day carrying about 110,000 daily passengers.
The union said: “If ratified, the tentative agreement will generate an approximate additional C$1.9 billion of value for Air Canada pilots over the course of the agreement.
“Ratification requires approval by a majority of the voting membership, who will soon receive the tentative agreement for review.”
Customers who used the airline’s labour disruption goodwill policy to change their flights originally scheduled from between September 15 and 23 to another date before November 30, 2024, can change their booking back to their original flight in the same cabin at no cost, providing there is space available, the airline said.
The UK Foreign Office had warned in updated travel advice on Saturday that potential industrial action at the airline may affect flights to and from Canada.