Air Canada has been ordered by the Quebec Court of Appeal to pay over $10 million in damages to passengers following a class-action lawsuit that alleged they charged more than the ticket price advertised. The case centered on the airline charging more than the advertised ticket prices by adding undisclosed taxes, fees, and surcharges.
Justice Judith Harvie, in her ruling on Tuesday, said that Air Canada exhibited “ignorance and laxity” and prioritised commercial interests over consumer rights. She emphasised that punitive damages were necessary due to the airline’s “negligent and careless” behavior.
“The fault is serious, deliberate and affects a large number of consumers,” the decision said in French.
“Air Canada has put its own commercial interests first, demonstrating a serious lack of concern and care for consumers. An award of punitive damages is necessary to denounce this behaviour.”
The 15-year-old case was brought by a Montreal resident, Michael Silas, and a consumer advocacy group. Silas claimed he paid $124 more than the price displayed on Air Canada’s website during the initial booking step in 2010. The plaintiffs argued that Air Canada’s lack of transparency violated Quebec’s Consumer Protection Act, misleading customers and preventing them from making informed choices.
The judge said Air Canada “no longer disputes” that it breached provincial law, while adding that “the evidence does not demonstrate that a specific consumer was in fact misled.”
Spokesman Peter Fitzpatrick said the ruling is based mainly on a difference of interpretation over the meaning and “interaction of federal and provincial laws” before February 2012, since clarified by case law.
The ruling overturned a previous lower court decision that acknowledged the legal breach but dismissed the need for compensation. It also reignites discussion around “junk fees” hidden charges that airlines increasingly impose, including checked baggage fees for basic fare customers.
The UNION DES CONSOMMATEURS took issue with the carrier’s framing.
“Despite Air Canada’s assertions, the violations of the Consumer Protection Act sanctioned by the court are not technicalities. On the contrary, it severely denounced the company’s ‘negligent and careless’ behaviour,” said co-director general Maxime Dorais in an emailed statement.
While Air Canada is reviewing whether to appeal, consumer group UNION DES CONSOMMATEURS insists the ruling reflects serious misconduct, not a technicality. Each affected passenger in the class-action group is expected to receive $14.45 per ticket purchased between June 2010 and February 2012.
The court emphasized the importance of upfront transparency, stating that all costs—based fare, fees, and taxes must be clearly displayed at the beginning of the booking process.
