After a lengthy court case, Canadian judges have ruled in favor of 
Air Canada amid a legal battle pertaining to compensation for a guest’s delayed luggage. The airline had initially been ordered to pay more than CA$2,000 to a passenger who had already received CA$250. Simple Flying has reached out to Air Canada for further information, and will update our coverage if a statement is received.
The situation arose back in May of 2022, and involved two passengers traveling from Toronto to Vancouver. One of their bags was delayed, arriving at their hotel a day after them, for which Air Canada offered financial compensation. However, the claimants pushed back with almost CA$3,500 worth of receipts, with a Canadian Transportation Agency (CTA) officer ordering Air Canada to increase its payout.
What Happened To Trigger This Situation?
According to the National Post, Alaa Badia Tannous and his wife, Nancy, flew from Toronto to Vancouver on May 25, 2022. One of their bags only made it to British Columbia a day later, with Air Canada refunding the couple CA$250 as a result. However, they were not satisfied with this, and subsequently submitted a claim to the CTA for CA$3,435.99, backed up by receipts of subsequent purchases.
It was found that some purchases, such as CA$1,310.40 worth of luggage, had been made after the delayed bag had reached the couple. With this factored in, a CTA officer determined that the true value of the case stood at CA$2,329.72, with Air Canada thus having to pay CA$2,079.72 on top of the CA$250 that it had already given out. Air Canada appealed this claim, with CBC quoting Tannous as saying:
“It was shocking. It’s disappointing to see [that] the airline, after all the money I spent with them over the years, (…) [is] appealing a CA$2,000 claim.”
A Lengthy Legal Battle That Lasted Nearly A Year
The National Post notes that the CTA officer’s order for Air Canada to give Tannous another CA$2,079.72 (US$1,510.32) in compensation was made in November of 2024, with the payment needing to be made by mid-December of that year. However, it wasn’t going down without a fight. Indeed, December 2024 saw the Canadian flag carrier and 
Star Alliance founding member appeal the decision.
This came in the form of a case in the Federal Court, triggering an 11-month legal battle concerning the situation. Now, the judge presiding over the case, Michael Manson, has ruled in the airline’s favor, stating that the purchases made “were excessive [and] included luxury items.” Manson also took aim at the CTA officer, saying that their actions regarding this claim do not “show any common sense.”
CBC also quotes Manson as saying that “the officer’s reasons do not address (… ) why post-delivery purchases were causally linked to the delay.” However, while Air Canada has won this particular appeal, the case as a whole isn’t over. Indeed, CBC notes that it has now been sent back to the CTA, with a new officer being assigned to reassess the claim and ultimately determine if further compensation is needed.
Air Canada To Start Charging For Larger Carry-On Bags On Basic Fares
The new rule will be implemented starting January 3, 2025.
An Eventful Year For Air Canada On The Baggage Front
This isn’t the first time this year that Air Canada has made the headlines as a result of a story relating to the carrier’s handling of a guest’s luggage. Indeed, Simple Flying reported back in July of 2025 that, when a passenger had their lost bag returned to them, they found that it also contained additional items that did not belong to them. These included two toiletry bags, a ticket scanner, and even a knife.
The passenger in question, a woman named Linda Royle, also found that some of her own belongings were missing from the bag upon its return to her. The situation arose when she was asked to check in her carry-on luggage before a flight from Toronto to St John’s in March 2025, only for the bag not to make it on to the plane. She asked Air Canada for compensation, with the missing items being worth $950.
