Air Canada's unionized flight attendants reached an agreement with the country's largest carrier on Tuesday, ending the first strike by its cabin crew in 40 years that had upended travel plans for hundreds of thousands of passengers.

Air Canada and the union representing 10,000 flight attendants resumed talks late Monday for the first time since the strike began over the weekend. The strike is affecting about 130,000 travelers a day at the peak of the summer travel season.

Air Canada said it will gradually restart operations after reaching an agreement early on Tuesday with the union for 10,000 flight attendants to end a strike that disrupted the travel plans of hundreds of thousands of travelers.

Canadian regulators once again ordered union leaders to end Air Canada's work stoppage on Monday, while employees remain defiant.

Asked about the Air Canada contract dispute, Conservative Leader Pierre Poilievre says more competition in the airline industry would lead to better wages for workers and lower costs for consumers. The strike ended on Tuesday when Air Canada and the union representing flight attendants reached a tentative agreement.

Air Canada announces a surprising new policy to compensate passengers after a cabin crew strike grounds hundreds of flights. The airline promises to cover transportation costs, but details are scarce.