Judge Orders Air Canada to Pay $10 Million in Passenger Class Action Settlement

Air Canada to Pay $10 Million in Passenger Class Action Settlement

Quebec Court of Appeal Holds Airline Accountable for Misleading Fare Listings

In a major legal victory for consumers, the Quebec Court of Appeal has ruled that Air Canada must pay more than $10 million in damages to passengers in a long-standing class action lawsuit. The case accused the airline of charging customers significantly more than the prices initially advertised on its website.

Justice Judith Harvie, writing on behalf of the court in Tuesday’s decision, criticized the airline’s practices, stating that Air Canada demonstrated “ignorance and laxity” in its interpretation of consumer law. The court determined that the company wrongly assumed it was exempt from a key section of the Quebec Consumer Protection Act.

What the Lawsuit Was About

Extra Charges Beyond Advertised Prices Sparked Legal Battle

The class action dates back 15 years and was spearheaded by a Montreal resident alongside a consumer advocacy group. At the heart of the complaint was an incident where the plaintiff was charged $124 more in taxes, fees, and surcharges than the price first displayed during the initial step of purchasing a ticket on Air Canada’s website.

The plaintiffs argued that such practices misled consumers and stripped them of the ability to make informed decisions about their purchases. The court agreed, ruling that the additional, undisclosed costs violated provincial consumer protection standards.

Lower Court Decision Overturned

Previously, a lower court acknowledged that Air Canada had breached the law but declined to award punitive damages, arguing that no harm had resulted. The appeal court overturned that decision, emphasizing that the misleading pricing structure had indeed harmed passengers and merited financial compensation.

Verizon Class Action Settlement 2025: How to Claim Your Share of the $100 Million Refund for Hidden Fees

Cash App Settlement: How to Track Your $2,500 Payout and What to Expect

Cibc Class Action Lawsuit Settlement Claim Canada

Meta Begins $90M Payouts in Facebook Lawsuit Over ‘Like’ Button Privacy Issue

Broader Implications for the Airline Industry

Are Airline Surcharges “Junk Fees” or Consumer Choice?

This landmark ruling arrives amid a broader national conversation around airline pricing transparency, especially as fees for baggage, seat selection, and taxes have become increasingly common. Critics have dubbed many of these surcharges “junk fees,” arguing that they obscure the true cost of travel.

While some in the industry defend these pricing models as offering more choices for passengers, this decision reinforces the legal obligation for airlines to present prices clearly and accurately at the outset of a transaction.

Air Canada Yet to Respond

As of the time of the ruling, Air Canada has not issued a public statement in response to the court’s decision. The company now faces both the financial penalty and the reputational impact of being found in violation of consumer protection laws.


[wtpsw_gridbox]

Leave a Reply

Your email address will not be published. Required fields are marked *