Air Canada Ordered to Pay $15,000 After Failed Flight Rebooking

Air Canada has been ordered to pay more than $15,000 to an Ottawa passenger after Ontario courts found the airline failed to comply with Canada’s Air Passenger Protection Regulations (APPR).

The case stems from a disrupted itinerary in July 2022, when Rejean Landry and his two adult children faced delays and cancellations on a Montreal-to-Lisbon trip connecting through Toronto. The airline did not provide timely rebooking options or compensation, leaving the family to navigate the disruption at their own expense.

Air Canada held accountable for flight disruption

The Ottawa Small Claims Court initially ruled in Landry’s favor, awarding damages for delayed travel, rebooking costs, and related losses. Air Canada appealed, but on January 12, 2026, the Ontario Superior Court of Justice upheld the decision, rejecting the airline’s arguments and reaffirming that passengers are entitled to proactive compensation and alternate arrangements when the carrier fails to deliver.

Air Canada has confirmed it will not seek further appeal, making the ruling final.

Details of the disrupted travel

The disruption occurred on the Montreal-to-Toronto segment, which caused the family to miss their onward connection to Lisbon. Because Air Canada did not provide compliant rebooking, Landry purchased higher-fare replacement tickets to avoid missing the international flight.

While the airline assisted with transferring checked luggage, the children’s return flights were automatically canceled because the original outbound segment went unused, forcing Landry to buy additional tickets to return home.

APPR requirements and broader implications

Canada’s Air Passenger Protection Regulations mandate that airlines provide timely rebooking or refunds and compensate passengers for delays of three hours or more within the airline’s control.

Compensation can reach up to $1,000 per passenger for flight delays or cancellations, and carriers must ensure alternate arrangements are offered when standard options are unavailable.

For travelers, the ruling underscores that these protections are enforceable through the courts, encouraging passengers to claim their rights when airlines fail to comply. For carriers, it serves as a cautionary message that unclear communication, passive responses, or failure to provide compliant rebooking will not meet regulatory standards.

Photo by Marko Pavlichenko on Unsplash