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.

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

Air Canada says customers affected by the flight attendant strike may claim other transport costs — like a car rental, bus or ferry — to seek compensation from the airline, but coverage will be determined on a case-by-case basis.

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.