The Supreme Court of Canada has upheld rules that bolster compensation for air passengers subjected to delayed flights and damaged luggage on international flights.

In a victory for air travellers across the country, the country's highest court unanimously dismissed an appeal by a group of airlines that challenged Canada's passenger rights charter.

Air Canada, Porter Airlines Inc. and 16 other appellants had argued that the Air Passenger Protection Regulations launched in 2019 violate global standards and should be rendered invalid for international flights.

The legal challenge, which kicked off that year, said that by imposing heftier compensation requirements for flight cancellations or lost baggage on trips abroad, the regulations exceeded the Canadian Transportation Agency’s authority and breach international rules known as the Montreal Convention.

In December, the Federal Court of Appeal dismissed the airlines' case, with the exception of one regulation that applies to the temporary loss of baggage.

The Canadian Transportation Agency and attorney general argued there is no conflict between passenger protections and the Montreal Convention, a multilateral treaty.