Following the Air Canada strikes that began final week, Chargebacks911 the worldwide transaction dispute prevention and remediation firm has mentioned that buyers are unlikely to rebook flights by way of the airline and are as a substitute going to look to recoup prices by way of their banks.
On Wednesday 13 August, Air Canada mentioned it might start a ‘phased wind down of most of [their] operations’ beginning Thursday, with an entire halt of flights scheduled for 1:30 a.m. Saturday. This comes after a 72-hour discover from the Canadian Union of Public Staff (CUPE) {that a} strike of as much as 10,000 flight attendants was imminent following failed negotiations with the airline.
For the greater than 130,000 travellers a day who fly Air Canada, this announcement has left many scrambling for various preparations. The airline’s public assertion affords rebooking choices, however for travellers heading to particular occasions, cruises, or different time-sensitive commitments, the dearth of viable options — particularly throughout peak summer time journey season — might push many to dispute their transactions through chargebacks, a time period for disputed credit score or debit card transactions reversed by the issuing financial institution.
With peak journey demand already straining airline operations and limiting various choices, Chargebacks911 warns that the monetary affect of mass disputes may very well be substantial for Air Canada — each in direct losses and in reputational hurt.
“To the typical traveller, when a service they’ve paid for is just not delivered—particularly one as expensive and time-sensitive as an airline ticket—the chargeback course of can look like the quickest, best approach to get their a reimbursement,” mentioned Monica Eaton, founder and CEO of Chargebacks911. “Sadly, this may create important monetary repercussions for airways, as every chargeback can value as much as 4 occasions the unique transaction as soon as chargeback charges, service provider account penalties, and misplaced transaction income are factored in.”
Chargebacks are meant as a shopper safety device for fraud or non-delivery. However in conditions like these the place refunds could also be a multi-step course of, passengers usually flip to their financial institution as a substitute of the service provider, bypassing official refund or rebooking procedures fully, submitting these disputes below “merchandise not obtained” cause codes and receiving a refund instantaneously in most conditions.
In truth, bypassing the service provider and disputing a cost instantly with the financial institution is just not solely one thing three-quarters of shoppers choose, however greater than half have achieved inside the final yr alone, in keeping with Chargebacks911’s 2025 Cardholder Dispute Index.
“Our recommendation to any journey operators or airways is that efficient communication is extra necessary than ever,” continued Eaton. “Clear, efficient, and responsive communication with prospects goes a good distance in making certain travellers resolve points with the service provider somewhat than their financial institution. That mentioned, some prospects will nonetheless decide to file a dispute, assuming that will probably be the simplest and quickest choice to recuperate their funds.”
