Air Canada (AC) reached a last-minute deal with its pilots’ union over the weekend, averting a labour strike at the country’s flagship airline.
The carrier, which operates more than 650 flights a day, said it will continue flying as normal after achieving a tentative new collective agreement with the Air Line Pilots Association (ALPA).
Air Canada said terms of the agreement remain confidential pending a ratification vote by the pilots’ union, which is to be completed over the next month.
The two sides had been negotiating a new contract for the past 15 months, with the pilots seeking pay increases similar to those seen at major U.S. carriers in recent years.
Air Canada had previously offered a wage increase of 30%, as well as improved pension and health benefits. But the union said their members demanded more from the airline.
Pilots at U.S. airlines have negotiated large pay raises in new contracts over the past two years, with pilots at United Airlines (UAL) getting pay increases of 42%.
The stock of Air Canada is down 14% this year and has fallen 63% over the past five years to currently trade at $15.85 per share.