Air Canada says customers can begin to submit refunds immediately after the carrier agreed to revise its COVID-19 refund policy as part of a deal that will see the federal government provide a total of $5.9 billion in aid to the airline, including up to $1.4 billion to support the new refunds. Importantly, Air Canada says it will not recall commissions for refunded tickets that travel agencies process.
The airline advised Tuesday that customers who booked through a travel agency must contact their agent directly, otherwise online refund requests will be accepted at aircanada.com/refund. The deadline for requests is June 12 and, according to the web site, refunds will take one to three months to be delivered.
The revised COVID-19 refund policy (including protected commissions) also covers Air Canada Vacations packages purchased before April 13, 2021 for flights cancelled either by the airline or by the customer for any reason on or after Feb. 1, 2020.
Yesterday, the tour operator said it would be reaching out directly to travel agents with affected customers to guide them through the refund request process, as well providing a Frequently Asked Questions document on its web site.
Meanwhile, airline refunds will cover eligible customers who bought non-refundable airline tickets or vacation packages between Feb. 1, 2020 and April 13, 2021. Customers who have already accepted a travel voucher or Aeroplan points instead of cash will also have the option to exchange these for a refund.
“Air Canada will be offering refunds to all eligible customers whether they cancelled their ticket or if their flight was cancelled by the airline,” Air Canada executive vice-president Lucie Guillemette said in a statement, adding, “We are committed to processing refunds as fast as possible.”
Future bookings
Air Canada has also revised booking policies for all future travel to provide more certainty if a flight is cancelled or rescheduled by more than three hours irrespective of the reason. All customers will have the choice of receiving a refund, an Air Canada Travel Voucher, or the equivalent value in Aeroplan Points with a 65% bonus.
For customers who make voluntary changes, normal fare rules will apply. Air Canada has also extended its existing goodwill policy so that customers can make a one-time change without a fee for all new or existing bookings made through May 31, 2021 for original travel until May 31, 2022.
“This new policy will provide more certainty and flexibility, so customers can book their future travel with greater confidence,” said Guillemette.
As part of the government aid package Air Canada has also committed to resume service at 13 regional airports as well as seven others through agreements with regional carriers, to cap executive compensation, maintain staffing levels, and to complete previously planned aircraft purchases.
The airline says it has already provided $1.2 billion to customers with refundable tickets, but also reported that it held $2.3 billion in advance ticket sales during the fourth quarter of 2020 – a period during Air Canada posted a staggering $1.16-billion loss, capping off what the carrier’s CEO called the bleakest year in aviation history.