WestJet strike may not be covered by new travel insurance policies

WestJet strike may not be covered by new travel insurance policies

Travellers flying with WestJet may find themselves without financial protection if a looming labour dispute grounds their flights. Travel experts warn that insurance policies purchased after a potential strike was announced are unlikely to reimburse customers for losses linked to the dispute.

The risk follows an announcement by the Canadian Union of Public Employees (CUPE) Local 8125, representing flight attendants on WestJet's main airline. Union members voted 99.4 per cent in favour of striking, meaning a walkout could occur as soon as the August long weekend if a deal is not reached. Because of this announcement, insurance providers can now classify a strike or lockout starting on Aug. 2 as a known event, which often disqualifies the event from coverage.

According to a memo from insurance provider Manulife distributed to travel professionals, benefits related to this potential strike would not apply. Martin Firestone, owner of Toronto-based Travel Secure, stated that the absence of risk makes such a move unsurprising, noting that's insurance for you.

While policies bought now typically still cover death or illness, they may not cover the inability to reach a destination due to a WestJet flight attendant strike. Firestone pointed out that the financial stakes often extend beyond the ticket price. He cited a hypothetical scenario where a traveller spends $1,000 on a flight to reach a $6,500 cruise; while a ticket refund might cover the flight, only trip interruption insurance could protect the cost of the missed cruise.

Airline Obligations and Passenger Rights

Passengers who lack insurance or find their policies insufficient still have some recourse. Alberta Motor Association travel expert Nikola Berube stated that it is the airline's obligation to rebook passengers or refund their money if they cannot operate a flight. This is supported by federal Air Passenger Protection Regulations from September 2022, which require airlines to provide a refund or rebooking at the passenger's choice for cancellations or lengthy delays caused by situations outside the airline's control.

However, Berube warned that the airline's version of rebooking may not be as convenient as the original itinerary. Furthermore, while some passengers may opt to buy new tickets on other carriers, they would have to cover those expenses themselves. An alternative is cancel for any reason insurance, though Berube noted this often only reimburses a portion of expenses, sometimes up to half.

For those already in transit, WestJet is required to provide meals, hotel accommodation, and transport if a strike within the airline's control leaves them stranded overnight. under EU Regulation 261/2004, passengers whose flights are cancelled or delayed by 3+ hours due to a strike by WestJet's own crew or pilots may be owed up to €600 in compensation.

Context of Labour Disputes

WestJet has a history of labour tension. The airline experienced a major dispute in the summer of 2024 when unionized mechanics struck over the Canada Day long weekend, affecting tens of thousands of travellers. Records show that since 1996, WestJet has faced five threatened strikes, though only one actually materialized. In previous instances, the airline has cancelled flights in anticipation of disputes to minimize negative effects.

Labour disruptions frequently hit WestJet's hubs hardest, particularly Calgary Airport, where most operations and ground crew are based. Other heavily affected hubs include Vancouver and Edmonton.

Current Status of Negotiations

Both the company and the union claim they are working toward a resolution. WestJet CEO Alexis von Hoensbroech described the strike vote as a common step in negotiations and stated this does not mean a strike will occur.

Alia Hussain, the union president and a WestJet flight attendant, said that striking is the absolute last thing the union wants to do. The potential for disruption remains active for passengers travelling between July 16 and August 2, 2026, as both sides attempt to hammer out a deal before the end of July.