Air Transat is to start offering refunds to travellers who had previously only been offered vouchers for flights cancelled as a result of Covid-19.

The Canadian carrier has struck a deal with Canada Enterprise Emergency Funding Corporation to offer cash to customers who were unable to travel as a result of Covid cancellations after February 1, 2020.

The policy applies to flights booked by April 29, 2021 – but requests must be made by those with vouchers by August 26, 2021.

Those booked with travel agents must make a request through their agent.

Going forward, customers affected when Air Transat amends its schedule will also be eligible for a cash refund.

Air Transat came under pressure earlier this year over its stance to only refund the outbound leg of flights between the UK and Canada, and only credit for the return leg. It said that this was all it was legally bond to refund under the EU261 regulations.

Addressing the policy change, chief operating officer Annick Guérard said: “We’ve been impatiently waiting for this moment, and we know our customers have been, too.

“Now that a funding agreement has been reached and the eligibility criteria have been established by the Government of Canada, we are delighted to be able to provide our customers with this long-awaited aid.”