An appeals court has dismissed a legal challenge filed by WestJet over an order to compensate a passenger for a flight cancellation, potentially setting a precedent for other such cases.

Canada's transport regulator — The Canadian Transport Agency (CTA) — had ordered WestJet to pay a passenger $1,000 for a 2021 flight cancellation. The Federal Court of Appeal ruled Monday that there was "no reviewable error" in the CTA's decision.

WestJet had maintained that the cancellation was for safety purposes and therefore it shouldn't be required to compensate the passenger.

But the three-judge panel found that WestJet didn't offer adequate evidence to the CTA to support its claim.

Air Canada, WestJet launch legal battles to overturn orders to compensate passengers for cancelled flights

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