Air Canada offers to cover passengers' added expenses racked up during strike

broadcast Canada passengers whose move around plans were disrupted during the recent  walk out by flight attendants are set to get some relief for their out-of-pocket expenses.

On Thursday, Air Canada announced it will cover "reasonable" expenses for hotels, meals and transport costs incurred by passengers who endured flight delays and cancellations between Aug. 15 and Aug. 23. 

"We deeply apologize," Air Canada COO Mark Nasr said in a statement. "And we're committed to making things right for all customers."

The announcement comes one day after Air Canada said it would reimburse passengers who booked travel on other airlines, or took another mode of transport after their flights were cancelled due to the strike. 

Under Canada's Air Passenger Protection Regulations (APPR), airlines aren't obligated to cover added travel expenses for flight disruptions caused by contract disputes. 

But aviation expert John Gradek suggests Air Canada offered to reimburse affected passengers who rebooked their own flights as damage control.

He points out that the APPR states that when airlines cancel flights for any reason, they must offer to rebook affected passengers.

"They know the federal government's going to be watching them," said Gradek, a professor of operations and integrated aviation management professor at McGill University.

"This is a step in the right direction."

Days after strike ends, some Air Canada passengers still stranded 

According to the APPR, when airlines cancel flights, they must provide affected passengers with a choice between a cash refund or a rebooking. 

If a large airline, such as Air Canada, can't rebook you on a partner airline within 48 hours after your original departure time, the carrier must attempt to rebook you on any airline — even a major competitor.  

If there's nothing available, the airline must search for alternative flights at another nearby airport, and provide transport to that airport.

Airlines that don't comply face hefty fines. Earlier this year, the Canadian Transportation Agency (CTA) hit Westjet with a $204,000 penalty for failing to rebook passengers whose flights were cancelled during a WestJet mechanics strike in 2024.

Although Air Canada is offering to cover expenses that passengers incurred during the strike, it's not offering additional compensation. 

And under the APPR, it has no obligation to do so. The regulations state that passengers can claim up to $1,000 for delayed or cancelled flights that are within the airlines' control. But it considers contract disputes beyond an airline's control.

However, Air Canada passengers can claim compensation if their cancelled flight departed from the United Kingdom or European Union-member countries. That's because passengers departing from those countries are covered by EU air passenger rights, which provide wider protections compared to Canada's regulations. 

Similar to the APPR, EU rules dictate that when airlines cancel flights, passengers are owed a refund or a rebooking. EU rules also state airlines can deny compensation for flight disruptions caused by a strike. However, they specify that this exemption only applies to disputes that don't involve the airline. 

A strike by an airline's own staff "does not release the airline from its obligation to pay compensation," the EU states online. 

Passengers can choose to file compensation claims under the APPR or EU regulations. Consequently, affected Air Canada passengers who qualify under EU rules can seek compensation of up to €600 ($965 Cdn). Passengers departing from the U.K. can claim up to £520 ($970 Cdn). 

"In Europe, the view is a lot more consumer-friendly by saying, 'No, no, the airline certainly could control how it interacts with its unions and the onus should be on the airline,' " said Geoff White, executive director of the Public Interest Advocacy Centre

"We've got a long way to go here in Canada."

Passengers travelling outside of Canada — including to the United States — may be able to claim expenses under the Montreal Convention, a treaty adopted by many countries, including Canada. 

The convention allows passengers flying internationally to seek compensation for delayed or damaged luggage, and for financial losses caused by flight disruptions.

Airlines aren't liable if the disruption was caused by "extraordinary circumstances," but Gradek says a strike that involves the airline shouldn't fall into that category.

"There is liability by the carriers to their passengers, even though it's a labour disruption."

Any passengers who believe Air Canada — or any other airline — didn't honour their rights can file a complaint with the CTA. However, they may be in for a long wait for resolution; in June, the federal regulator reported a backlog of more than 87,000 air passenger complaints. 

Advice for travellers seeking compensation from airlines

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