A judge in Quebec has given the green light to a class-action lawsuit against Air Canada (TSX:AC) over fuel surcharges.
A Quebec Superior Court judge has authorized a class-action lawsuit that argues the country's largest airline "illegally overcharged its customers" by more than doubling the cost of fuel on some flights. Lawyers representing passengers claim that Air Canada misrepresented the stated purpose of the surcharge, which was to partially offset the fluctuating price of jet fuel.
The lawsuit cites one example in which Air Canada allegedly charged business and economy passengers 105% more than the fuel cost on a flight to Paris in January 2014. Each passenger on that flight allegedly paid $238 in fuel surcharges alone — $163 more than they should have according to Air Canada's contract definition of the charge.
The airline took in $73,878 in fuel supplements on that one flight alone, rather than the $23,164 it should have charged, according to the lawsuit. The legal action further states that Air Canada's contract with consumers allows it to charge them up to 33% more than the cost of fuel. The class action concerns customers in Quebec who bought international tickets to destinations outside the U.S., Mexico and the Caribbean between April 2012 and November 2014.
Air Canada has said it disagrees with the allegations and will "vigorously defend" its position in court.
