Air Canada Agrees to $4.5 Million Settlement Over Refunds
- Payment stemmed from airline’s Covid-19 flight cancellations
- Penalty would be largest ever by DOT’s consumer division
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Air Canada has agreed with U.S. aviation regulators to pay $4.5 million to settle charges that it didn’t properly give refunds to U.S. travelers when it canceled or altered flights during the Covid-19 pandemic.
The settlement between the airline and U.S. Department of Transportation -- which must be approved by an administration law judge -- would be the largest ever by the agency’s Office of Aviation Consumer Protection. The airline would pay $2.5 million to passengers, and the remaining $2 million would go to the U.S. Treasury, the agency said in a statement on Monday.