CALGARY - WestJet Airlines (TSX:WJA) could be forced to pay more compensation for lost or damaged luggage following a preliminary ruling by the Canadian Transportation Agency.

The agency received a complaint from a University of Manitoba professor over WestJet's $250 limit on baggage liability.

Gabor Lukacs argued that Air Canada's limit is $1500 for lost luggage on domestic flights, while international carriers provide a much higher level of compensation.

An official with WestJet says the discount carrier is reviewing the decision but it is too early to say what changes, if any, will be made.

The airline has the right to appeal the ruling.

Marc Comeau, a spokesman for the transportation agency, says it has the authority to order WestJet to change its policy.