Air Canada to offer refunds for flights cancelled during the pandemic

Relief plan reached between airline and the federal government

If you’ve been waiting for a refund for airline tickets that could not be used in the last year due to the pandemic you may be getting it soon.

The federal government and Air Canada have reached an agreement on a financial aid package. It’s a variety of low-interest loans up to $5.4 billion. The government will also take an equity stake in the airline.

Finance┬áMinister Chrystia Freeland called it a good and fair deal for Canada and Canadians noting, “Taxpayers aren’t footing the bill. This is a loan facility, and the government of Canada fully expects to be paid back.”

In return, Air Canada has agreed to refund customers whose flights were cancelled due to COVID travel restrictions. The airline has also agreed to maintain current staff levels and restore flights on most regional routes.

Air Canada has taken a huge hit during the pandemic. Passenger numbers declined 73 per cent last year after following several years of record growth.

Talks between the government and other airlines continue.