Appeals Court Upholds $1,000 Payout for Flight Cancellation
WestJet has lost a key legal battle over passenger compensation, after Canada’s Federal Court of Appeal upheld a ruling that ordered the airline to pay $1,000 to a traveler affected by a 2021 flight cancellation.
The court rejected WestJet’s challenge, finding “no reviewable error” in the Canadian Transport Agency’s (CTA) decision.
WestJet Argued Safety Exemption
WestJet maintained that the flight cancellation stemmed from a safety issue and therefore should not trigger compensation under federal regulations.
The airline said a first officer called in sick about an hour before departure, and no replacement could be secured in time. The company argued this justified the cancellation.
However, the three-judge panel disagreed, stating:
“The agency had to be satisfied, on a balance of probabilities and based on the evidence before it, that [WestJet] had taken reasonable measures to implement a reasonable contingency plan to mitigate the flight disruption.”
The court concluded WestJet failed to provide sufficient evidence to support its position.
Passenger Faced 21-Hour Delay
The case centered on Owen Lareau, whose July 2021 flight from Regina to Ottawa was canceled, leaving him delayed by 21 hours.
The CTA, a quasi-judicial tribunal and transport regulator, ruled that WestJet “did not sufficiently establish” that the cancellation was unavoidable. It ordered the airline to pay Lareau $1,000 in compensation.
Wider Implications for Airlines
This ruling could influence other disputes between airlines and passengers under the CTA’s compensation framework.
- Air Canada, which intervened in this case, has also launched challenges to CTA rulings.
- Monday’s decision signals that courts may defer to the CTA when airlines fail to prove cancellations were beyond their control.
What’s Next
WestJet has not yet publicly commented on the court’s decision. The ruling may encourage more passengers to pursue compensation claims under Canada’s passenger rights regulations, especially in cases involving delays and cancellations tied to staffing shortages.
