Air Canada said it has refunded nearly $1 billion to customers since Jan. 1, 2020 (The Canadian Press)

Air Canada said it has refunded nearly $1 billion to customers since Jan. 1, 2020 (The Canadian Press)

Air Canada revises refund policy amid growing anger over cancelled flights

Air Canada said it has refunded nearly $1 billion to customers since Jan. 1

Air Canada is revising its cancellation policy amid mounting customer frustration, offering travellers the option of a voucher with no expiration date or Aeroplan points if the airline cancels their flight due to the COVID-19 pandemic.

The airline says the new policy — the previous one capped travel vouchers at 24 months, with no Aeroplan option — applies to non-refundable tickets issued up to the end of June, with an original travel date between March 1 and June 30.

Air Canada’s fresh tack comes as consumer advocates and thousands of passengers continue to demand their money back for services they paid for but have not received.

Three petitions with more than 89,000 signatures are calling for full refunds to be implemented before financial aid is handed out to airlines, two of which were presented to the House of Commons over the past 11 days.

Cathy Maltese, who was booked on an Air Canada flight from Toronto to Orlando, Fla., over the March break with her three children, said she is “extremely disappointed” with how the airline has treated customers.

“At least now my family has the option of travelling when it is safe again and don’t have to worry about the time running out for us,” Maltese said in an email.

“To garner trust and respect again, they also have to give customers the option of a refund. There are many families struggling right now to put food on the table,” she said. “Why should they lose that money?”

Air Canada said it has refunded nearly $1 billion to customers since Jan. 1, largely to travellers who paid for refundable tickets.

“While the world is making great progress against COVID-19, we know we must remain vigilant, which includes being flexible,” chief commercial officer Lucie Guillemette said in a release Friday.

The loyalty points option allows customers to convert their booking into Aeroplan miles “and get an additional 65 per cent bonus miles,” she said.

Toronto resident Bob Scott, who launched a petition presented to Parliament last week by Liberal MP Yasmin Ratansi, said passengers are “becoming increasingly angry at what they see as the government’s complicity in the daylight robbery being committed by the airlines.”

Canada is out of step with the United States and the European Union, he noted, where officials have ordered airlines to reimburse customers for cancelled flights. The Canadian Transportation Agency chalks up the difference to U.S. and EU legislation establishing a “minimum obligation” to refund that Canada lacks.

None of Canada’s major airlines touts policies offering to return cash to passengers for the hundreds of thousands of flight cancellations since mid-March, opting instead for vouchers — typically with a timeline of two years.

Pressed on the issue Thursday at his daily media conference, Prime Minister Justin Trudeau said the government needs to have “some very careful discussions with airlines” as well as Canadians to maintain a balance where travellers are “treated fairly” and the sector stays intact.

Passenger rights advocate Gabor Lukacs said the law requires airlines to refund customers, adding that fares may well go up in the coming year, reducing the value of travel credits.

“Air Canada continues to skirt its obligations to refund the approximately $2.6 billion dollars it owes to passengers,” Lukacs said in an email.

Airlines have been sending repatriation flights and offering customers vouchers, but typically they advertise no refund policies for cancelled routes.

WestJet’s website highlights future travel credit for cancelled flights, but says: “We are not processing refunds to original form of payment at this time.”

The disclaimer comes despite the company’s tariff — the contract between airline and passenger — which states that “the unused portion of the passenger’s ticket(s) will be refunded” in the same form as it was purchased, “should the alternate transportation proposed by the carrier not meet the passenger’s satisfaction.”

On Friday, Air Canada also said it will bolster its summer schedule, which nonetheless remains more than 50 per cent smaller than last year as the COVID-19 pandemic continues to pound the airline industry.

The 97 destinations compare with 220 last summer but mark an improvement from the past six weeks, when 95 per cent of its flights were still suspended.

Christopher Reynolds, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Air CanadaCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RCMP are investigating after a witness reported seeing two individuals breaking into and removing items from a mailbox in Armstrong Thursday, Nov. 26, 2020. THE CANADIAN PRESS/Jeff McIntosh
Thieves break into, steal items from Armstrong mailbox

Police investigating after items were taken from a community mailbox on Van Kleeck Avenue Thursday

Tim Hortons in Lake Country banded together to help raise more than $4,700 for the local food bank through its Smile Cookie campaign. (Photo submitted)
Lake Country Tim Hortons brings smiles to food bank

Annual Smile Cookie campaign raises $4,735

RCMP searched for a suspect in Polson Park following an assault on a woman Thursday, Nov. 26. (Morning Star file photo)
Public warned after woman assaulted in Vernon’s Polson Park

RCMP on the hunt for suspect, described as in his 30’s

The resident relations coordinator of Heaton Place Retirement Community in Armstrong, Carrie O’Neill, explores the power of storytelling in her latest column. (Contributed)
Benefits of storytelling boost quality of life for Armstrong seniors

Heaton Place resident relations coordinator looks at the benefits sharing seniors’ stories has

Vernon Morning Star columnist Sam McNair kicks off his spotlight on small businesses with the Fig Bistro. (Sam McNair - contributed)
Small Business Spotlight: Vernon’s Fig Bistro keeps personal touch amid pandemic

Contributor Sam McNair kicks off small business series

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. sets another COVID-19 record with 887 new cases

Another 13 deaths, ties the highest three days ago

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Kelowna firefighters on scene of an apartment fire on Friday, Nov. 27, 2020. (Phil McLachlan/Kelowna Capital News)
Firefighters tend to apartment blaze along Gordon Drive

Two dogs were found safe inside the unit

Alexandre Bissonnette, who pleaded guilty to a mass shooting at a Quebec City mosque, arrives at the courthouse in Quebec City on February 21, 2017. THE CANADIAN PRESS/Mathieu Belanger - POOL
Court strikes down consecutive life sentences; mosque shooter has prison term cut

The decision was appealed by both the defence and the Crown

Gold medallists in the ice dance, free dance figure skating Tessa Virtue and Scott Moir, of Canada, pose during their medals ceremony at the 2018 Winter Olympics in Pyeongchang, South Korea, Tuesday, Feb. 20, 2018. THE CANADIAN PRESS/AP-Charlie Riedel
Olympic champions Virtue, Moir and Tewksbury among 114 Order of Canada inductees

Moir and Virtue catapulted to national stardom with their gold-medal performances at the Winter Olympics in 2018

Shoppers line up in front of a shop on Montreal’s Saint-Catherine Street in search of Black Friday deals in Montreal, Friday, Nov. 27, 2020. THE CANADIAN PRESS/Paul Chiasson
Black Friday shopping in a pandemic: COVID-19 closes some stores, sales move online

Eric Morris, head of retail at Google Canada, says e-commerce in Canada has doubled during the pandemic.

School District 27 announced the first confirmed case of COVID-19 this week (Nov. 23) at Lake City Secondary School Williams Lake campus. (Angie Mindus photo - Williams Lake Tribune)
Entire gym class at northern B.C. high school isolating after confirmed COVID case

Contact tracing by Interior Health led to the quarantine

After twice have their wedding plans altered due to COVID-19 restrictions, Suzanne Schmidt and Andrew Sturgess got married in Bakerview Park last weekend, with the only guests being their two daughters, Zoey (foreground) and Tessa. (Darren Ripka photo)
From New Zealand to Bakerview Park, B.C. couple weds in ‘backyard’

Twice scaled-down wedding ‘proof that good things still happen during bad times’

Most Read