Air Canada will refund all tickets to passengers whose travel plans were changed by the Covid-19 pandemic as part of a liquidity program agreement reached with the Canadian government.
The new policy covers all travelers with nonrefundable tickets whose flights were canceled either by Air Canada or the traveler due to the pandemic. The policy applies to tickets bought for travel on or after Feb. 1, 2020, that were purchased before Tuesday.
"Customers can now submit refund requests online or through their travel agent, and we are committed to processing refunds as fast as possible," according to Air Canada EVP and chief commercial officer Lucie Guillemette.
Travelers who bought tickets from an agency will have to contact that agency directly for the refund. Air Canada will not recall commissions paid to its travel agency partners for tickets that are refunded.
For tickets bought from Tuesday onward, Air Canada will continue to offer refunds for any traveler whose flight is canceled or rescheduled outside of a three-hour window of the original ticket. Travelers also can opt for a fully transferable voucher with Air Canada without an expiration date or for the value of their ticket to be converted to Aeroplan points with a 65 percent bonus in lieu of a refund.
Air Canada's permanent rules for voluntary changes have not changed for future purchases, though the carrier extended its policy allowing one-time changes without a fee to run through May 31, 2022, a year beyond its original expiration date.
The refund rules were part of an agreement attached to a liquidity program, in which Air Canada can access up to C$5.9 billion through the Canadian government's Large Employer Emergency Financing Facility program. The program also requires Air Canada to resume service to most regional communities where service was suspended either through direct service or interline agreements with regional carriers and to maintain employee levels at least equal to those as of April 1, 2021. Air Canada additionally must complete an acquisition of 33 Airbus A220 aircraft, which are being manufactured at a Quebec facility. The carrier plans to complete an existing order of 40 Boeing 737 Max aircraft as well.
The liquidity program includes C$500 million from a purchase of Air Canada shares and the remainder in loans, including a C$1.4 billion loan specifically to support ticket refunds.