Stronger Air Passenger Protection Rules

Summary#

The Government published proposed changes to the Air Passenger Protection Regulations on December 21, 2024. The changes aim to simplify passenger rights and make rules clearer about compensation, refunds, rebooking, communications, assistance (meals, hotels, phone access) and seating children, while increasing enforcement tools and penalties.

What it does#

• Replaces the old three-category system for flight disruptions with a single approach that:
  • Defines an exhaustive list of “exceptional circumstances” (when carriers do not have to pay compensation).
  • Says compensation is due for delays, cancellations and bumping unless an exceptional circumstance applies.
• Sets clear timelines and amounts:
  • Compensation amounts for delays for large carriers: $400, $700, $1,000 depending on how late arrival is.
  • Compensation amounts for delays for small carriers: $125, $250, $500.
  • Bumping (denied boarding) minimums: $900, $1,800, $2,400 tied to expected arrival delay.
  • Carriers must pay bumping compensation automatically and no later than 48 hours.
  • Carriers must respond to denied compensation claims with a detailed explanation within 30 days (or 48 hours in bumping cases).
• Improves communications:
  • Carriers must collect and use each passenger’s preferred electronic contact at check‑in.
  • When a disruption happens, carriers must send key information without delay and then update passengers every 30 minutes until rebooked or a refund is requested.
• Assistance and rebooking:
  • Assistance (food, drink, means of communication) is required for delays of 2 hours or more; overnight accommodation if delay goes overnight.
  • Assistance must be provided even in exceptional circumstances, but limited to 72 hours in those cases.
  • Rebooking rules differ by carrier size:
    • Large carriers: must offer a confirmed rebooking on their (or partner) next flight departing within 9 hours, or on any carrier within 48 hours if needed.
    • Small carriers: must try to rebook on their (or partner) next flight within 48 hours, then on any carrier from the same airport within 72 hours, and if needed from another nearby airport (transport to that airport provided free).
• Refunds:
  • Passengers can request a refund when a flight is delayed 3 hours or more, is cancelled, or they are bumped.
  • If the Government of Canada issues or upgrades a travel advisory to “avoid non‑essential travel” or “avoid all travel” for a destination or connection, passengers who cancel before check‑in can get a refund.
  • Refunds must be paid within 15 days (reduced from 30 days).
• Passenger claims and evidence:
  • Carriers must publish a clear claims process and, when denying compensation due to an exceptional circumstance, provide the evidence supporting that claim.
• Seating of children:
  • Carriers must assign children under 14 years a seat next to their parent/guardian at reservation, at no extra charge, or tell the booker if that is not possible.
• Enforcement and penalties:
  • Maximum Administrative Monetary Penalties for corporations rise to $250,000 for many breaches listed in the rules.
• Economic estimate (Government analysis):
  • Present value cost to Canadian carriers: $512.4 million over 10 years.
  • Present value benefit to passengers: $527.3 million.
  • Net present benefit: $14.9 million.
  • Annualized cost to carriers ≈ $0.99 per passenger segment.

Who's affected#

• Passengers flying to, from, or within Canada — especially those who experience delays, cancellations, or being denied boarding.
• Airlines operating in Canada, both large carriers and small carriers (the rules keep different timelines for each).
• People who rely on small/regional carriers — including many northern and Indigenous communities.
• The Canadian Transportation Agency, which enforces the rules and will handle complaints and new fees for complaint processing.
• A small number of businesses: the government estimates 11 small air carriers would be affected as small businesses.

Why it matters#

• For travellers: rights would be clearer and easier to use. You could get faster refunds (15 days), earlier ability to choose a refund (after 3 hours delay), regular electronic updates, food and phone access after 2 hours, and guaranteed seating for children under 14 next to an adult at booking.
• For airlines: the rules raise expected costs (the Government’s estimate is $512.4 million over 10 years) and raise maximum penalties to $250,000, which could affect operations, pricing or how carriers handle disruptions.
• For communities served by small carriers: the rules aim to give more reliable rebooking options, which can reduce the chance of being stranded in remote areas.
• This is a proposal, not law yet. The public was invited to comment within 75 days after publication in the Canada Gazette, Part I (published December 21, 2024). The final rules would come into force after further steps (including publication in Part II) if approved.