US officials propose $25M fine against Air Canada over airfare refunds

The U.S. has filed a formal complaint against Air Canada, seeking a $25 million fine from the airline for failing to provide timely refunds to over 5,000 passengers amid the coronavirus pandemic.

This marks the first enforcement action that the Department of Transportation has announced against an airline since the pandemic’s start in spring 2020. Air Canada said it will challenge the allegations and believes the U.S. government’s position is meritless.

Nearly 6,300 complaints against Air Canada’s refund policies have been filed since March 2020. In 2019, only 25 refund complaints were filed against the airline.

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