Passenger rights group takes WestJet to court claiming ‘deceptive’ reimbursement policy

A passenger rights advocacy group is taking legal action to block what it claims are misleading reimbursement practices by one of Canada’s largest airlines.

Air Passenger Rights is seeking an injunction against WestJet in an attempt to prevent the airline from enforcing the alleged policy, pending a trial.

The dispute centers on how much passengers can claim for reimbursement when they are stranded due to flight delays or cancellations. If passengers require meals or accommodations and vouchers are unavailable, they can file claims with WestJet.

Previously, the airline’s website stated that domestic passengers could claim up to $150 per night for hotels, while international passengers could claim up to $200 per night. It also mentioned a daily meal allowance of $45.

However, Air Passenger Rights argues that these limits do not align with either the Montreal Convention or Canada’s Air Passenger Protection Regulations.

"WestJet’s excuse to avoid reimbursing passengers really boils down to WestJet’s unwillingness to pay based on a self-imposed ‘guideline,’” the group said in its notice of application filed in B.C. Supreme Court in October.

“It is not much different than WestJet simply stating, 'I will not reimburse you, as I do not want to,' with the Guidelines added as a false sense of legitimacy to deceive passengers.”

According to the group, after it sent WestJet a cease-and-desist letter, the airline “surreptitiously” removed the guidelines from its website. However, it claims WestJet continues to apply the policy “behind the scenes.”

“What is clear is that passengers should not be spending a night at the airport just because WestJet is not able to find a good deal with its own vendors,” said Air Passenger Rights president Gabor Lukacs. “In such situations, passengers should be able to get a hotel room and spend the night in a proper room, same thing about meals.”

“We are not talking about eating caviar. We’re not talking about eating 10 portions of lobster, but a normal lunch, normal dinner, a normal breakfast, main course, dessert, some beverage, not alcoholic, just something completely normal, completely ordinary is well within reason.”

Simon Lin, the lawyer for Air Passenger Rights, told the B.C. Supreme Court in New Westminster that the group is seeking to “shine a spotlight on allegations of shabby corporate conduct” and argued that an injunction is necessary since the airline allegedly continues to enforce the policy despite changes to its website.

While WestJet removed the reimbursement limits from its website, it maintains this is not an acknowledgment of wrongdoing.

In its filings, the airline stated that it secures hotel accommodations for stranded passengers in 95% of cases. It also noted that it regularly consults with the Canadian Transportation Agency regarding compliance with air travel regulations and that the agency has not raised any concerns about the reimbursement guidelines on its website.

WestJet further announced that it is revising its cancellation claims reimbursement process. Starting November 1, passengers will receive an email informing them that “reasonable” accommodation expenses will be covered, without referencing any "caps" or limits on those expenses.

The airline’s representatives are scheduled to present their arguments in court on Wednesday, with a trial on the matter set for January 2026.