Supreme Court upholds stronger compensation rules for Canadian air passengers on international flights

In a major victory for Canadian travellers, the Supreme Court of Canada has upheld federal regulations that strengthen compensation rights for passengers facing flight delays, cancellations, or damaged luggage on international flights.

The country’s top court unanimously dismissed an appeal by Air Canada, Porter Airlines, and 16 other carriers that had challenged the Air Passenger Protection Regulations (APPR) introduced in 2019. The airlines had argued that the rules violated international aviation standards under the Montreal Convention and exceeded the authority of the Canadian Transportation Agency (CTA).

The Supreme Court ruling means that airlines will continue to be required to provide higher compensation and clearer accountability to passengers whose international travel is disrupted. The decision effectively reaffirms Canada’s commitment to consumer protection in air travel, even when operating under international frameworks.

The Federal Court of Appeal had already dismissed the airlines’ legal challenge in December, except for one provision related to temporary loss of baggage. The CTA and the Attorney General of Canada argued successfully that the national passenger protection regime does not conflict with international treaties.

Air passenger advocacy groups welcomed the decision, calling it a landmark judgment that ensures airlines remain responsible to travellers - a matter of growing concern amid ongoing complaints about delays and lost baggage at major Canadian airports.