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

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

Air CanadaBԪַs 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 BԪַextremely disappointedBԪַ with how the airline has treated customers.

BԪַAt least now my family has the option of travelling when it is safe again and donBԪַt have to worry about the time running out for us,BԪַ Maltese said in an email.

BԪַTo 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,BԪַ she said. BԪַWhy should they lose that money?BԪַ

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

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

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

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

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 BԪַminimum obligationBԪַ to refund that Canada lacks.

None of CanadaBԪַs 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 BԪַ 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 BԪַsome very careful discussions with airlinesBԪַ as well as Canadians to maintain a balance where travellers are BԪַtreated fairlyBԪַ 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.

BԪַAir Canada continues to skirt its obligations to refund the approximately $2.6 billion dollars it owes to passengers,BԪַ 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.

WestJetBԪַs website highlights future travel credit for cancelled flights, but says: BԪַWe are not processing refunds to original form of payment at this time.BԪַ

The disclaimer comes despite the companyBԪַs tariff BԪַ the contract between airline and passenger BԪַ which states that BԪַthe unused portion of the passengerBԪַs ticket(s) will be refundedBԪַ in the same form as it was purchased, BԪַshould the alternate transportation proposed by the carrier not meet the passengerBԪַs satisfaction.BԪַ

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

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