Air Canada has suspended its guidance for the third quarter and full year as a strike by flight attendants stretches into its third day despite Canada's labour regulator declaring it illegal. The airline and its Air Canada Rouge subsidiary have had rolling cancellations since the strike by around 10,000 flight attendants started on 16 August led by the Canadian Union of Public Employees (CUPE). On 17 August, the Canada Industrial Relations Board (CIRB) declared the ongoing strike illegal and ordered CUPE and its officers to "immediately cease all activities that declare or authorise an unlawful strike of its members and to direct the members of the bargaining unit to resume the performance of their duties," Air Canada states. As of the evening of 19 August, however, the flight attendants had not returned to work, and rolling cancellations appear likely to continue. Earlier, Air Canada had planned to restart operations on the evening of 18 August after Ottawa intervened and appointed the CIRB to arbitrate the labour dispute, a large part of which is focused on pay for duties performed by flight attendants before and after flights. The carrier says that over 500,000 passengers have now been affected by the strikes, and have been offered refunds, future travel credits or rebooking on another airline. Air Canada Express flights operated by Jazz and PAL are not affected by the strike. "Given the effects of the labour disruption and related impact on operations, Air Canada is suspending its guidance for third quarter and full-year 2025 operating results provided in its July 28, 2025 news release," the company says. At that time, Air Canada forecast that third-quarter capacity would increase by 3.25-3.75% year-on-year, with full-year adjusted earnings before interest, tax, depreciation and amortisation of C$3.2-3.6 billion ($2.32-2.61 billion).

Jeju Air has pointed to intensifying competition in the Korean market and exchange rate movements as reasons for its operating loss in the quarter ended June ballooning more than fourfold to W45 billion ($32.4 million). Revenue for the three-month period fell 26.3% to W315 billion, which it attributed to "proactive flight schedule adjustments to enhance operational stability", which reduced seat capacity by 7.9% and drove ancillary revenues down 32%. Load factor across its network slipped by 2.7 percentage points to 88.2%. The largest hit was on its international operations, which reported a 19.5% fall in ASKs and 22.7% reduction in RPKs that pushed load factor down 3.4 points to 86%. Domestically, ASKs were down only 0.7% while RPKs declined 2.3% pushing load factor down 1.7 points to 91.7%. More positively, net profit nearly halved from W21.4 billion to W12 billion. The airline ended the quarter with cash and cash equivalents of W137 billion, down from W190 billion at the start of the period. Fleets data shows that the carrier has 36 Boeing 737-800s and six Max 8s in service, two 737-800SFs in storage and 34 additional Max 8s on order.

S&P Global has downgraded Spirit Airlines to 'CCC' after the airline disclosed in its quarterly filing for the period ended 30 June that there is substantial doubt about its ability to operate as a going concern. "Continued deterioration in the airline's operating performance – driven by overcapacity in key domestic markets, engine issues limiting capacity growth and utilisation, and elevated labour costs – has widened S&P Global Ratings' projected cash flow deficit, and we believe the company may breach its minimum liquidity covenant in the near term," S&P says. As a result, the rating agency has lowered its issuer credit rating on the company to 'CCC' from 'CCC+'. It also downgraded Spirit's enhanced equipment trust certificates (EETCs) by one notch, reflecting its lower issuer credit rating on the company. "The negative outlook reflects our doubt around the company's ability to improve operating performance and maintain sufficient liquidity, and our view that a debt restructuring or a distressed exchange is likely over the next 12 months," S&P says. It adds: "Spirit is actively implementing measures to strengthen its cash position, but the pace of improvement may be insufficient to prevent a liquidity crisis. Despite taking steps such as network reconfiguration, pivoting toward premium, and cost reduction strategies (including pilot furloughs), Spirit's turnaround plan has yet to generate progress in its financial results."