New Passenger Refund Rules May Increase Airfares, Think Tank Says

A free-market think tank, the Montreal Economic Institute (MEI), warns that proposed changes to Canada’s air passenger compensation rules could lead to higher ticket prices and worsen the affordability of air travel. Gabriel Giguère, a senior analyst at MEI, argues that the new regulations would increase operational costs for airlines by holding them accountable for disruptions outside their control, potentially impacting regional routes the most. While some advocate for stronger passenger protections, Giguère believes the changes could threaten the viability of smaller community connections. The Canadian Transportation Agency estimates these new rules may cost airlines about a dollar per passenger yearly.

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