Air Canada announced Saturday that it has suspended all flights after 10,000 flight attendants launched a strike, forcing Canada’s largest airline to halt operations of both Air Canada and its low-cost subsidiary, Air Canada Rouge.

The Canadian Union of Public Employees (CUPE), which represents the attendants, said the strike officially began at 12:58 a.m. local time (0458 GMT). The union confirmed that 99.7 percent of its members had voted in favour of the walkout, marking one of the largest labour disruptions in the airline’s history.

Air Canada said the shutdown will impact approximately 130,000 passengers each day the strike continues. The company added that a lockout of flight attendants has also taken effect to prevent employees from working during the standoff.

The dispute follows eight months of negotiations that failed to produce a new agreement. CUPE said its members are demanding pay increases, fair ground pay, improved pensions and benefits, and longer rest periods between flights.

"Flight attendants are standing together to demand respect for the critical role we play in keeping passengers safe," CUPE said in a statement, accusing Air Canada of refusing to meet reasonable demands.

Air Canada had already begun reducing its 700 daily flights earlier in the week in anticipation of the strike after CUPE issued notice on Wednesday. The airline said it regrets the impact on customers and is urging the union to return to talks.

The work stoppage comes as Canadian air travel enters one of its busiest summer periods, raising concerns about widespread cancellations, stranded passengers, and pressure on rival carriers.

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