Air Canada has successfully overturned a ruling that ordered the airline to pay a passenger $2,000 for delayed luggage, ending a months-long legal dispute over passenger rights and airline liability. The case, which drew attention from consumer advocates, centred on whether the airline failed in its duty to deliver baggage within a reasonable timeframe.
The passenger had argued that the delay caused significant inconvenience and financial loss, claiming they were forced to purchase essential items while waiting for their suitcase to arrive. A lower tribunal initially agreed and awarded $2,000 in compensation, citing passenger protection guidelines and the airline’s responsibility in cases of mishandled baggage.
Air Canada challenged the decision, saying the tribunal exceeded its authority and misinterpreted the relevant international aviation rules. In its appeal, the airline argued that compensation for delayed luggage is capped under the Montreal Convention, a global treaty governing airline liability, and that the original award was far above what the treaty allows.
The court sided with Air Canada, ruling that the earlier decision did not properly apply international standards. The judgment emphasized that while passengers are entitled to reimbursement for reasonable expenses due to delays, such compensation must be clearly documented and fall within legally defined limits.
Consumer advocates expressed concern that the ruling could make it harder for travellers to seek meaningful compensation for disrupted trips, while Air Canada said the decision brings clarity and consistency to how baggage claims should be evaluated.
The passenger may still pursue reimbursement for documented expenses, but the $2,000 payout has been officially quashed.