Judge orders Air Canada to pay passengers $10M in damages after class action

Travellers check in at Trudeau airport in Montreal, Friday, Jan. 3, 2025, on the day Air Canada implements carry-on-fees for basic fare tickets. (THE CANADIAN PRESS/Graham Hughes.) (Graham Hughes/The Canadian Press)

The Quebec Court of Appeal is ordering Air Canada to pay passengers more than $10 million in damages in a class action lawsuit that alleged they were charged higher amounts than the ticket price advertised.

In a ruling Tuesday, Justice Judith Harvie wrote that Air Canada showed “ignorance and laxity” when the airline concluded it was exempt from a provision of the provincial Consumer Protection Act.

The decision overturns a lower court decision that found Air Canada had breached the law but that no harm resulted, eliminating the need for punitive damages.

The 15-year-old case was brought forward by a consumer advocacy group and a Montreal resident who said he was charged $124 more in taxes, fees and surcharges than the fare price listed during the first step of the ticket-buying process on Air Canada’s website.

In their initial claim, the plaintiffs argued that the airline undermined customers’ ability to make informed choices and must reimburse sums that were charged above the advertised price.

The appeal court ruling comes amid a debate about whether growing airline fees and fare classes amount to so-called junk fees or offer greater choice for travellers. Air Canada did not immediately reply to a request for comment.

This report by The Canadian Press was first published April 23, 2025.

Christopher Reynolds, The Canadian Press