Nearly every industry in Canada has been touched in some way by the ongoing COVID-19 pandemic. However, there is no denying the fact that the travel industry has been affected in some of the most significant ways. As flights all over the world came to a halt with the lockdown in place, Air Canada suffered on many levels.
New data out this week shows that it was not just the troubling bottom line that plagued the Canadian airline giant. The company also logged the second-highest number of complaints in the industry for passengers using the airline to travel to and from the US.
Details of the Complaints: According to the US Department of Transportation, Air Canada had the second-highest number of complaints regarding refunds out of any airline in the month of May. The data indicated that Air Canada logged 1,705 refund complaints. This number is out of a total of 10,415 complaints against airlines not headquartered in the US. Air Canada had the unenviable distinction of having more complaints filed than over 80 foreign carriers that service the US.
The only airline to log more complaints was United Airlines, coming in at 3,215 filings. What is also concerning is the wide margin that was in place between Air Canada and the next highest foreign carrier. Coming in after Air Canada was TAP Air Portugal. This airline registered 901 refund complaints, marking just over half of the number of complaints filed against Air Canada.
The root of the complaints comes from Air Canada’s policy to not reimburse customers who experienced flight cancellations as a result of the pandemic. Like the European Union, the US requires that airlines refund passengers in these types of situations. While the list of reasons for a required reimbursement is not entirely comprehensive, Canadian airlines are not subject to these same regulations when flying on their home soil. This makes filing a complaint to the US regulating office an attractive option for Air Canada passengers that had flights cancelled in or out of the US.
Not a Positive Trend: May was the second month in a row that Air Canada ranked in toward the top of the list of airlines in complaints registered. This is not a good trend for the Montreal-based company looking to gain favor during an unprecedented economic climate. These complaints came despite a much lower passenger load during May. When compared to competitors British Airlines and Lufthansa, Air Canada carried fewer passengers that flew either in or out of the US.
According to the US Bureau of Transportation Statistics, WestJet Airlines Ltd. came in right under Air Canada for passenger traffic between the US and Canada. However, WestJet only finished sixth on the list of refund complaints among airlines not based in the US. Unlike Air Canada, WestJet mandated that customers who had booked flights to or from the US or the UK were entitled to refunds if applicable.
Ruling Against US Airline Regulations: The US Department of Transportation came out on April 3 to mandate that all domestic passengers need to be provided a refund if their flights were cancelled or delayed significantly. The mandate said that this rule applied to both domestic and foreign carriers. However, Air Canada continues to fight these passenger complaints, explaining that this mandate is only recommended guidance and not enforceable by the law.
