Broader rules under the Airlines Passenger Protection Regulations (APPR) come into effect September 8, 2022.

As the Canadian Transportation Agency (CTA) notes, until now, the APPR only required refunds to be provided for flight disruptions within the control of airlines.

The new rules coming into effect today now require airlines to provide passengers with either a refund or rebooking, at the passenger’s choice, when there is a flight cancellation, or a lengthy delay, due to a situation outside the airline’s control that prevents it from ensuring that passengers complete their itinerary within a reasonable time.

The rules apply to all flights to, from and within Canada, including connecting flights.

According to the CTA, the new regulatory requirements …

• Require airlines to provide a passenger affected by a cancellation or a lengthy delay due to a situation outside the airline’s control with a confirmed reservation on the next available flight that is operated by them or a partner airline, leaving within 48 hours of the departure time indicated on the passenger’s original ticket. If the airline cannot provide a confirmed reservation within this 48-hour period, it is required to provide, at the passenger’s choice, a refund or rebooking
• Identify what costs must be refunded (unused portion of the ticket, which includes any unused add-on services paid for)
• Identify the method to be used for refunds (same as the original payment, e.g., a return on the person’s credit card)
• Require airlines to provide a refund within 30 days

As the update from the CTA notes, COVID-19 pandemic revealed a gap in Canada’s air passenger protection framework: the absence of a requirement for airlines to refund tickets when flights are cancelled, or where there is a lengthy delay, for reasons outside airline control and it is not possible for the airline to ensure that the passenger’s itinerary is completed within a reasonable time.

The new regulations apply to flight disruptions that occur as of September 8, 2022.

The CTA is currently dealing with a backlog of thousands of air passenger complaints. Airlines refusing compensation claims on the grounds of crew constraints, i.e. staff shortages, have become a major issue for airlines, passengers and the CTA over the past several months.