Airlines operating international routes to and from Canada are governed by the idiosyncratic set of liability rules set out in the Montreal Convention[1], which is incorporated into the domestic law of Canada by way of the Carriage by Air Act.[2]

Entering into force in 2003, the Montreal Convention seeks to achieve uniformity across its 140 signatory countries on the upper limit of damages that may be recovered against airlines for: (i) passenger death/bodily injury, and (ii) delay/destruction/loss of baggage and cargo.[3]

Every five years, the International Civil Aviation Organization (ICAO) reviews the limits of liability under the Montreal Convention to determine whether they should be adjusted for inflation.[4] Earlier this year, ICAO implemented an increase to the limits of 17.9%, effective December 28, 2024, as follows:

Type of Damage Current Limit in Special Drawing Rights (SDR)[5] Revised Limit in SDRDeath or bodily injury 128,821 (CA$238,897) 151,880 (CA$281,660)Delay in passenger transport 5,346 (CA$9,914) 6,303 (CA$11,688)Destruction, loss, damage, or delay of baggage 1,288 (CA$2,388) 1,519 (CA$2817)Destruction, loss, damage, or delay of cargo 22 (CA$41) per kilogram 26 (CA$48) per kilogram

In effect, when the Montreal Convention applies to a claim, strict liability is the rule up to the ICAO-prescribed limit.