Air Canada to pay US$4.5 million in settlement with U.S. Department of Transportation

TORONTO: The U.S. Department of Transportation’s Office of Aviation Consumer Protection (OACP) will settle with Air Canada for US$4.5 million after filing an action against the airline for its extreme delay in providing refunds for flights to and from the United States that were cancelled or adjusted early in the pandemic.

Part of the settlement is a US$2 million fine to be paid directly to the U.S. Treasury.

The complaint against Air Canada was first filed in June, and OACP was at first seeking a penalty of US$25 million. At the time of filing the action, OACP said it had received more than 6,000 complaints against Air Canada since March 2020 from consumers who had their flights changed at short notice and were denied a refund.