TORONTO -- Air Canada and the federal government reached an agreement on a $5.9-billion aid package Monday through the Large Employer Emergency Financing Facility (LEEF). Part of their deal had the carrier agree to several stipulations, including issuing refunds to passengers whose flights were cancelled due to the pandemic.

Around $1.4-billion was set aside for the airline to process and issue refunds to customers, which the company must begin no later than April 30, according to the agreement.

Air Canada said in a news release that customers can begin applying for refunds immediately starting Tuesday, and can request a refund online at Air Canada’s website until June 12, 2021.

Air Canada said that customers who booked their flights through a travel agency must contact their agent directly.

The policy also applies to Air Canada Vacations Packages, the release states.

The revised refund policy covers tickets and Air Canada Vacations packages purchased before April 13, 2021 for flights cancelled by the airline or the customer for any reason, according to the release.

“Air Canada will be offering refunds to all eligible customers whether they cancelled their ticket or if their flight was cancelled by the airline. Customers can now submit refund requests online or through their travel agent and we are committed to processing refunds as fast as possible," said Lucie Guillemette, Executive Vice-President and Chief Commercial Officer at Air Canada.

Guillemette continued to say that Air Canada has revised its booking policies for future travel.

Starting April 13, in cases where a customer's flight is cancelled or rescheduled by more than three hours, Air Canada will now offer all customers “the choice of receiving a refund, an Air Canada Travel Voucher (ACTV) or the equivalent value in Aeroplan Points with a 65 per cent bonus.”

Customers who have already accepted an ACTV or Aeroplan points will have the option to exchange them for a refund to the original form of payment including for the unused portion of any ACTV issued or where a partial refund was provided.

Air Canada is extending a refund option to all eligible customers with tickets for travel dates on or after February 1, 2020 and who purchased their ticket before April 13, 2021.

The refunds are available to those customers whose flight was cancelled or who voluntarily cancelled their flight for any reason, and who wish to submit a request for a refund to their original form of payment.

Normal fare rules will apply for customers who make voluntary changes, the release states, but the carrier has extended its existing goodwill policy so that customers can make a one-time change without a fee for all new or existing bookings made through May 31, 2021 for original travel until May 31, 2022.

Air Canada says it has refunded more than $1.2 billion to customers since March 2020.