The U.S. Department of Transportation has filed a formal complaint against Air Canada over refund concerns.
The department is seeking a penalty of US$25.6 million over delays in providing refunds to American travelers.
The agency claims over 6,000 refund complaints have been filed since March 1st, 2020.
It also says Air Canada has argued the company isn't require to reimburse customers for flights cancelled due to the pandemic.
Air Canada has vowed to challenge the proposed fine.
In April, the company agreed to refund passengers whose flights were cancelled after receiving a federal aid package worth up to $5.9 billion.
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