https://bc.ctvnews.ca/passenger-deni...card-1.3029989

This article is a little dated, but does indicate that any airline can have their own policy requiring a passport even if Canada Border Services doesn’t require it.

However, Air Canada’s travel requirements page is explicit that although a passport is strongly recommended it is not required,

https://www.aircanada.com/ca/en/aco/...cuments.html#/

You will need to start with a complaint to customer service for your specific out of pocket expenses.