According to aviation tech firm airfairness, around 551,697 passengers in total were affected by Air Canada’s labour disruptions.Chris Helgren/Reuters
Air Canada AC-T passengers whose travel plans were upended by last month’s labour disruptions are owed more than $66-million in compensation for lost time and inconvenience from the airline, according to estimates from a Toronto-based aviation tech firm.
This figure is above and beyond any refunds or rebookings that may be owed by the airline.
Data provided to The Globe and Mail by airfairness, which analyzes passenger eligibility for compensation based on commercial aviation data, showed that nearly 54,000 estimated travellers are owed approximately $52-million in compensation under European Union rules related to labour disruptions in the period between Aug. 13 and Aug. 22.
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Another 15,204 passengers are eligible for compensation under British rules, totalling roughly $14.8-million, according to airfairness estimates.
In total, their data showed 3,292 flights were cancelled worldwide in the analyzed period. The EU and Britain are among the few jurisdictions that offer air passenger compensation for labour disruptions.
“It’s a staggering number,” said Zohair Khan, co-founder and chief operating officer at airfairness. “I don’t think people realize the amount of travellers in the air at any given day of the year – three days and over half a million people impacted around the world.”
Compensation is different from refunds or reimbursement for expenses. Reimbursement covers expenses and refunds return the cost of airfare and related purchases, whereas compensation is an additional payment for inconvenience – the hassle and time lost – during a flight disruption.
According to airfairness, around 551,697 passengers in total were affected by Air Canada’s labour disruptions, which began when the carrier started pre-emptively cancelling flights after a strike notice by the union representing its flight attendants and ended when most services resumed on Aug. 22.
“It is Air Canada’s policy to abide all regulations in the jurisdictions where we operate at all times,” said Air Canada spokesperson Peter Fitzpatrick in an e-mail. “Because we are a publicly traded company, to the extent that we disclose costs associated with the disruption, this will occur with our regular, quarterly financial reporting.”
Just 116 flights were cancelled in the same length of time ahead of the labour disruptions, affecting around 14,500 passengers. The estimated compensation under the EU and British rules would be up to around $2-million.
A majority of travellers eligible for compensation as a result of the labour disruptions fell under European regulations known as EC261 and their British equivalent, UK261. Under these rules, strikes by airline staff are considered within the airline’s control and passengers are owed compensation for their ordeal – up to around $970.
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These rules apply to passengers flying from the EU or Britain with any airline, including Air Canada. Most passengers flying between Europe and Canada qualified for the higher end of the range due to the distance of their journey, said Mr. Khan.
None of the firm’s compensation estimates fell under Canada’s Air Passenger Protection Regulations, said Mr. Khan. Unlike in Europe, Canadian regulations consider strikes by airline employees as outside of the airline’s control, and, therefore, affected passengers aren’t owed compensation (though passengers are still owed a timely refund or rebooking).
“Air Canada, they’ll shut down their operations and there’s no legal recourse against them for this,” said Mr. Khan. For example, even though Air Canada flight attendants officially went on strike on Aug. 16, the airline cancelled flights for more than 36,000 passengers days ahead of time, according to airfairness.
A majority of travellers eligible for compensation as a result of the labour disruptions fell under European regulations known as EC261 and their British equivalent, UK261.PETER POWER/AFP/Getty Images
Under Canadian rules, if an airline cancels a flight before a strike begins, it may be considered within the airline’s control.
However, the case law is scarce and aviation rulings have tilted in favour of airlines in the past. Mr. Khan cited the example of Boyd v. WestJet where the B.C. civil resolution tribunal found that a strike notice qualified as a “labour disruption.” That decision is currently under judicial review.
Hundreds of additional Air Canada passengers may be entitled to compensation under Brazilian law, too, often up to about US$1,800 per person, said Mr. Khan. His firm did not include these figures in their estimates though as Brazilian awards are determined on a case-by-case basis rather than set by a fixed schedule.
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In its analysis, the company pulled and compared data from flight scheduling databases used by major airlines as well as historical passenger load data, with an estimated margin of error of 4 per cent.
In addition to refunds, rebookings and other operational losses related to last month’s strike, compensation payouts would be a significant financial blow to the carrier. Air Canada’s net income in 2024 amounted to $1.720-billion.
While the European Union and Britain have clear rules about compensation, particularly when compared to Canada, it remains to be seen whether Air Canada pays its dues to passengers, said Geoff White, executive director and general counsel at the Public Interest Advocacy Centre.
“We have seen the lengths to which companies go to fight with customers over entitled compensation, including through litigation.”