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Mass cancellations, surge in chargebacks expected due to Air Canada strike

Friday, August 15, 2025 — 15:04:23 (UTC)

MONTREAL, Aug. 15, 2025 — Air Canada—the country’s largest airline—announced Wednesday it would begin a “phased wind down of most of [their] operations” starting Thursday, with a complete halt of flights scheduled for 1:30 a.m. Saturday. This comes after a 72-hour notice from the Canadian Union of Public Employees (CUPE) that a strike of up to 10,000 flight attendants was imminent following failed negotiations with the airline.

With travel disruptions and flight cancellations anticipated to remain in place until a deal is reached, transaction dispute experts at Chargebacks911—a global transaction dispute prevention and remediation company—expect this will lead stranded or disgruntled Air Canada and Air Canada Rouge customers who are disinterested in rebooking their flights to circumvent the Air Canada altogether and recoup their money another way: through their bank.

For the more than 130,000 travelers a day who fly Air Canada, this announcement has left many scrambling for alternative arrangements. The airline’s public statement offers rebooking options, but for travelers heading to specific events, cruises, or other time-sensitive commitments, the lack of viable alternatives—especially during peak summer travel season—could push many to dispute their transactions via chargebacks, a term for disputed credit or debit card transactions reversed by the issuing bank.

With peak travel demand already straining airline operations and limiting alternative options, Chargebacks911 warns that the financial impact of mass disputes could be substantial for Air Canada—both in direct losses and in reputational harm.

“To the average traveler, when a service they’ve paid for is not delivered—especially one as costly and time-sensitive as an airline ticket—the chargeback process can seem like the fastest, easiest way to get their money back,” said Monica Eaton, founder and CEO of Chargebacks911. “Unfortunately, this can create significant financial repercussions for airlines, as each chargeback can cost up to four times the original transaction once chargeback fees, merchant account penalties, and lost transaction revenue are factored in.”

Chargebacks are intended as a consumer protection tool for fraud or non-delivery. But in situations like these where refunds may be a multi-step process, passengers often turn to their bank instead of the merchant, bypassing official refund or rebooking procedures entirely, filing these disputes under “item not received” reason codes and receiving a refund instantaneously in most situations.

In fact, bypassing the merchant and disputing a charge directly with the bank is not only something three-quarters of consumers prefer, but more than half have done within the last year alone, according to Chargebacks911’s 2025 Cardholder Dispute Index.

“Our advice to any travel operators or airlines is that effective communication is more important than ever,” continued Eaton “Clear, effective, and responsive communication with customers goes a long way in ensuring travelers resolve issues with the merchant rather than their bank. That said, some customers will still opt to file a dispute, assuming that it will be the easiest and fastest option to recover their funds.”

For more information on Chargebacks911, visit www.chargebacks911.com.

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About Chargebacks911 Chargebacks911® is the global leader in chargeback prevention and remediation technology, offering critical crisis management support for some of the world’s largest travel companies. As a platform provider to merchants and financial institutions, Chargebacks911 is the first global company fully dedicated to providing an end-to-end platform specifically designed to counter post-transactional fraud and chargeback misuse. Today, Chargebacks911 safeguards more than 2.4 billion transactions per year on behalf of clients in 87 countries around the world, supporting over 2.5 million merchants. For details on Chargebacks911’s comprehensive dispute management solutions, visit chargebacks911.com.

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Source: Company press release.

Categories: Reports and research