“If Air Canada cancels your flight, don’t accept a refund” says this passenger rights expert. Here’s what to do

Why You Should Think Twice Before Accepting a Refund from Air Canada After a Cancellation

A planned strike by CUPE, the union representing 10,000 flight attendants at Air Canada and Air Canada Rouge, is expected to begin Saturday, August 16 at 01:00 ET. Some 25,000 Canadians risk being stranded abroad as a result. If Air Canada cancels your flight during events like a strike, consumer advocate Gabor Lukacs says passengers should be cautious about taking the refund option immediately.

While it might seem like a quick resolution, doing so can actually limit your rights under Canada’s Air Passenger Protection Regulations (APPR).

Why is the strike happening?

CUPE says its members are fed up with stagnant wages and outdated pay structures. While Air Canada posted $3.5 billion in profits for the 2023–24 fiscal year, the union claims the airline has not tabled meaningful offers during negotiations. One major point of contention is that flight attendants are only paid once the aircraft starts moving, which leaves ground duties like boarding, deplaning, and safety checks unpaid.

What the Law Says

Canada’s APPR lays out specific protections when your flight is cancelled. Even if the cancellation is due to something “outside the airline’s control,” such as labor disputes or weather events, airlines must:

1. Rebook you on the next available flight—including those operated by competing airlines—if that gets you to your destination sooner.

2. Cover the cost of that rebooking at no additional charge.

3. Offer alternate travel arrangements in the same class of service you originally purchased.

If you accept a refund, the airline’s obligation to arrange alternative travel ends. In other words, you’re on your own to secure a replacement ticket, often at a much higher price.

Why Airlines Push Refunds

Refunds are cheaper for airlines because they avoid paying for potentially expensive last-minute seats on competitor flights. With ticket prices often spiking after cancellations—especially during peak travel periods—passengers could end up paying hundreds or even thousands more for comparable flights.

If Air Canada Refuses to Rebook You

If the airline declines to place you on another carrier, you still have options:

1. Buy a replacement ticket yourself.

2. Keep all receipts and a record of your communication with the airline.

3. File a reimbursement claim with Air Canada, citing your rights under the APPR.

4. If your claim is rejected, escalate it to the Canadian Transportation Agency (CTA), which can investigate and enforce compliance.

How to Initiate a Rebooking

1. Contact Air Canada’s customer service immediately after receiving notice of the cancellation.

2. Clearly state: “I want to be rebooked at the earliest possible time, including on flights operated by other airlines.”

3. Ask for written confirmation of your rebooking request.

4. If they say no, request a written statement explaining why—this can help with a later claim.

Bottom Line

While taking a refund might seem like the easiest path, it often leaves you with fewer protections and higher costs. By knowing your rights and insisting on rebooking—especially on another airline when necessary—you can save money, time, and a lot of frustration.