Air Canada has reached a tentative four-year agreement with the Air Line Pilots Association, avoiding a potential strike or lockout. The deal addresses pilot demands for wage increases to close the pay gap with U.S. carriers. The new agreement will remain confidential until ratified by over 5,200 pilots. The airline had been preparing to cancel flights before reaching the agreement. Air Canada's offer of a wage increase and improved pension and health benefits was rejected by the pilots' union, which deemed it insufficient for members still operating under outdated 2014 terms.