Air Canada Ordered to Pay $7.2M for Hidden Fees
Air Canada has been slapped with a $10 million CAD punitive damages award after the Quebec Court of Appeal ruled that the airline misled passengers by hiding mandatory fees during the booking process. In a decision issued on April 22, 2025, the appellate court overturned a 2019 Superior Court dismissal of a class action lawsuit that dated back to June 2010. The original case was initiated by a Montreal passenger who discovered he was charged over $124 in undisclosed fees when booking a ticket to Florida through Air Canada’s website.
The court found that by only displaying the base fare at the start of the booking flow, and revealing additional taxes and surcharges only after customers had selected flights, Air Canada violated Quebec’s Consumer Protection Act. Judge Judith Harvie wrote that the airline demonstrated “ignorance and laxity” by assuming it was exempt from provincial consumer laws due to its federal regulation. She described Air Canada’s conduct as “serious, deliberate and affecting a large number of consumers,” and emphasized that punitive damages were necessary to denounce the behavior and discourage future violations.
Air Canada had argued that no real harm occurred because passengers completed the purchases once they saw the full costs. The appellate court rejected this reasoning, noting that consumer law presumes harm when companies fail to provide clear, upfront disclosure of total prices. Judge Harvie also pointed out that Air Canada ultimately conceded it had broken the law, and that a significant award was warranted given the scale of customers affected over the course of nearly two years.
The $10 million CAD punitive award will be shared among travelers who purchased tickets between June 30, 2010, and February 8, 2012. The class action had argued that tens of thousands of customers in Quebec encountered Air Canada’s incomplete pricing, believing the base fare represented the final cost until forced to pay more during checkout. Consumer rights advocates hailed the decision as a warning that large corporations cannot sidestep provincial protections by invoking federal jurisdiction.
In response to the ruling, Air Canada released a brief statement indicating it was considering its legal options and would comply with the judgment. The airline has faced criticism over opaque pricing practices for years, and this verdict ramps up pressure on carriers to make all charges—including fuel surcharges, airport fees and service levies—clearly visible at the outset of online bookings. Observers predict that other Canadian airlines may review their websites to avoid similar lawsuits.
The class action victory is the culmination of a long battle for transparency advocates. The Union des consommateurs, which backed the initial lawsuit, noted that class members will now receive compensation for what they paid in non-disclosed fees, though individual payments may vary depending on the number of claims filed. The group called on federal and provincial regulators to harmonize rules, ensuring all airlines must present final prices before bookings are confirmed.
As the industry watches how Air Canada adapts its booking engine and disclosure practices, the ruling serves as a stark reminder that consumer protection laws apply to any business operating in Quebec, regardless of federal oversight. The case may influence policy discussions in other provinces and prompt a broader reevaluation of airline pricing transparency across Canada.
Related News : https://airguide.info/?s=Air+Canada