Air Canada agrees to $4.5m settlement over refunds

Air Canada has agreed with US 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 US DoT -- 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 $2.5m to passengers, and the remaining $2m would go to the US Treasury, the agency said Monday. “Today, the US Department of Transportation’s OACP is holding airlines accountable by ensuring that they treat passengers fairly when flights are significantly changed or canceled,” DOT Deputy Secretary Polly Trottenberg said. The penalty, which would settle civil allegations brought in June, is for Air Canada’s “extreme delays in providing refunds to thousands of consumers for flights to or from the United States,” the agency said. “Air Canada and the DOT have agreed to settle this matter without prejudice or any finding of wrongdoing,” said Peter Fitzpatrick, a spokesman for the airline. “This agreement was entered into to avoid protracted litigation as Air Canada focuses, together with all stakeholders, on rebuilding following the pandemic.”<br/>