The move has plunged the airline into turmoil during one of the busiest travel weeks of the summer.
Around 10,000 cabin crew, represented by the Canadian Union of Public Employees (CUPE), walked off the job last week in a dispute over pay and working conditions.
The Canada Industrial Relations Board (CIRB) ordered them back to work and imposed binding arbitration, but union leaders say they will not comply.
“If it means folks like me going to jail, then so be it,” said Mark Hancock, CUPE national president.
The stoppage has grounded hundreds of flights across North America, disrupting an estimated 130,000 passengers a day. Airports including Toronto, Vancouver, Montreal and San Francisco reported major cancellations on Monday.
Mike Rousseau, Air Canada CEO, said the airline was “amazed” by the union’s refusal to obey the law and accused CUPE of harming customers and the company’s reputation.
The airline has offered a compensation package worth nearly 40% over four years, which it says would make its flight attendants among the best paid in Canada.
The union argues the proposal does not address inflation or uncompensated duties such as boarding and deplaning work.
CUPE plans to challenge the government’s back-to-work order in federal court, leaving passengers braced for further cancellations and uncertainty.
In a statement, the airline said customers whose flights are cancelled will be notified and are strongly advised not to go the airport unless they have confirmed flights on other airlines.
Air Canada will offer those with cancelled flights options, including obtaining a full refund or receiving a credit for future travel.
The carrier will also offer to rebook customers on other carriers, although capacity is currently limited due to the peak summer travel season.