A published report says Air Canada has agreed to offer refunds to customers for flights postponed or cancelled due to the COVID-19 pandemic.

In an interview with the Toronto Star on Wednesday, Unifor president Jerry Dias said he’s spoken with government officials and Air Canada representatives involved in the negotiations, and that the company has agreed to Ottawa’s demand to repay customers who weren’t reimbursed for their plane tickets.

In an interview with Bloomberg News in November, former Air Canada president and CEO Calin Rovinescu said he had no issue with refunds.

“We know the minister (Canada’s Minister of Transport) has made it clear that refunds would be required, and based on the size and scale of the program we have no issue, no quarrel with that at all. We have already refunded about $1.2 billion of refundable fares, and of course there’s been a lot of pressure about the non-refundable fares, and so we would definitely do that assuming that the terms of the support package are adequate and that the terms are appropriate and reasonable.”

Still, Dias’ comments are a strong indication that a sector-specific deal is close between Canada's airlines and the Justin Trudeau government in Ottawa.

As well as insisting on refunds for airline customers, Liberal government officials have said that any financial assistance package also would require that airlines restore vital flight routes cut during the COVID-19 pandemic.

Rovinescu last month said he thought a deal with Ottawa was close.

“While there is no assurance at this stage that we will arrive at a definitive agreement on sector support, I am more optimistic on this front for the first time," he said.

Both ACTA and ACITA have said that bailout packages should protect travel agents and travel agencies from commission recalls.