OTTAWA – Canada’s flagship carrier, Air Canada, has been slapped with a substantial fine by the Canadian Transportation Agency (CTA) for violating aviation regulations and failing to provide mandatory refunds to passengers. The agency imposed a penalty of $426,000 following an investigation into the airline’s conduct during a major labor strike in August 2025.
The CTA found that Air Canada committed 71 violations of the Air Passenger Protection Regulations (APPR). When flight crews went on strike last August, leading to widespread cancellations, the airline reportedly failed to either rebook passengers on alternative flights or provide the required refunds. Under Canadian law, even when cancellations are caused by events outside an airline’s control—such as a strike—carriers are legally obligated to ensure passengers reach their destination via another flight or receive a full refund.
The labor action, which involved over 10,000 flight attendants seeking better wages and benefits, caused significant disruptions for thousands of travelers across the country. While the CTA viewed the airline’s negligence as a serious breach of passenger rights, the labor dispute itself has since been resolved through arbitration. A new contract, effective until March 2029, has secured wage increases for the employees.
Air Canada has been given until April 18 to appeal the penalty or request a review of the fine amount. For now, the ruling serves as a stern reminder from federal regulators regarding the enforcement of traveler protections in Canada.
