Air Canada blames computer system for $4,000 airfares to leave Fort McMurray

After customers accused Air Canada of price gouging during the Fort McMurray wildfire, the airline is offering a refund to all those who paid high fares while evacuating the area.

"It is not correct that we raised fares in response to this devastating situation," Air Canada said in a statement last week. "This was a result of Air Canada's computerized revenue management system, which automatically manages fares."

Airlines use an algorithm that examines many factors, including supply and demand, to determine airfare. Air Canada said it was unable to "intervene" to adjust fares — which went over $4,000 — during the first days of the Fort McMurray fire.

For customers who paid higher fares on May 3 and 4, the airline said it will adjust the price to the "lowest advance fare and refund the difference." 

Flights from Fort McMurray to Edmonton are currently listed at $90 on AirCanada's website.

As of Sunday, Air Canada operated 20 charter flights, evacuating more than 1,400 people from the area. The airline also donated $50,000 to the Canadian Red Cross and waived baggage and pet fees for passengers evacuating.

Meanwhile, airlines Canadian North and WestJet are offering free shuttle flights from Fort McMurray to Edmonton International Airport.

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Over 12,000 people have been evacuated by air from the work camps north of Fort McMurray. More than 300 unscheduled flights brought evacuees to Edmonton Airport.

Since the fire, people have been coming together at the airport in acts of goodwill, reported Edmonton News. Volunteers at the airport have distributed free blankets and offered rides and medical assistance to stranded passengers.

The wildfire in western Canada is still raging. It has devastated over 400,000 acres of land. Over 88,000 people have been evacuated from the area and at least 1,600 buildings have been torched.

The fire evacuation is the largest in Alberta's history.

UPDATED 2:30 p.m. ET: The original version of this story incorrectly stated that Air Canada's statement regarding the price hikes was released on Sunday. The statement was issued on Wednesday, May 4.

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