New refund rules for cancelled and delayed flights take effect across Canada

A departing Air Canada flight taxis to the runway at Vancouver International Airport, in Richmond, B.C., on Thursday, December 2, 2021. THE CANADIAN PRESS/Darryl Dyck

Richmond, B.C. — New refund requirements for commercial flights are now in effect across the country.

Starting Thursday, airlines are now obligated to provide passengers with refunds for flights in several circumstances.

The new federal requirements apply to all flights from and within Canada, including connecting flights.

Delays caused by sudden mechanical issues, weather, and even war are now covered.

“I think that's fair, but I'd want some money too, some compensation for my troubles,” said Marisa Shaver, a traveller who landed from Vancouver International Airport from Ottawa.

If a flight is cancelled or delayed by three hours or more, the airline must now offer a reservation on another flight operated by it, or one of its partners within 48 hours of the original departure time.

If that’s not possible, it must provide a refund or alternative arrangements, free of charge.

“I think that the interesting issue will be how those disputes are proven when it comes to if an airline says something is, you know, a mechanical issue or something like that. But it's also going to be how these kinds of claims will be enforced,” said Allison Wallace, a spokesperson for Flight Centre.

Advocates argue there are loopholes in the new rules.

"Say someone wants to leave on a Friday afternoon and the flight gets cancelled, the airline under these new regulations can claim that they can pocket the passengers money as long as they offer the passenger a new flight Sunday afternoon,” said Gabor Lukas, an air passenger rights advocate.

Critics say the regulations unfairly target airlines, when delays may be caused by customs, security, or the airport itself.

“If the point of these expanded regulations is to try and minimize flight disruptions which of course is what we all want then the fact that there's no service standards and no accountability for these other entities is going to be a real cause for concern,” said Jeff Morrison, of the National Airlines Council of Canada.

Travellers across the country have been stuck in hours-long delays in recent months due to staff shortages among security screeners and an ongoing labour dispute.

“We were here two weeks ago and leave with a lineup that strike and started here. It was all the way to the back end of international. It was insane,” said Gordon and Giselle Birch, who were heading home to Terrace after a trip to Greece.

Travel agents are hopeful these new rules will better protect travellers.

Airlines must issue refunds within 30 days and those who don’t comply can be fined up to $25,000 per incident.