Canada will outsource its air-passenger complaints process to a third party to resolve a record-high backlog of unresolved cases.

The move aims to protect travellers and restore regulatory effectiveness after the system failed to keep pace with the volume of passenger disputes. By shifting the processing to an external entity, the government expects to accelerate resolutions and hold carriers more accountable.

Transport Minister Pascale MacKinnon said the plan Friday during the Spring Economic Update 2026. The initiative comes as the government faces a backlog of between nearly [2] and over 100,000 [1] air travel complaints.

Under the new framework, the government will implement tougher fines for airlines that do not comply with regulations or fail to address passenger concerns promptly. This strategy is intended to discourage carriers from ignoring claims while the third-party provider works through the existing queue.

"We are committing to faster resolutions and tougher fines for airlines that fail to address passenger concerns promptly," MacKinnon said.

Industry observers suggest the shift is a necessary correction. John Gradek said the new measures to clear the backlog of air travel complaints is a step in the right direction.

The decision to outsource follows years of increasing frustration from passengers who have waited months or years for resolutions regarding delays, cancellations, and baggage issues. The federal government has not yet named the third-party provider that will manage the process.

“Canada will outsource its air-passenger complaints process to a third party to resolve a record-high backlog.”

This shift represents a transition from a direct government-managed regulatory model to a hybrid outsourcing model. By introducing steeper financial penalties alongside third-party processing, the Canadian government is attempting to create a deterrent against airline negligence while simultaneously scaling its administrative capacity to handle a volume of complaints that has outpaced internal resources.