A WestJet plane from Cancun, Mexico, had been stationary and waiting to go to a gate at Pearson International Airport just after 6pm on Friday night when it was hit by a Sunwing aircraft.
The Sunwing, which had no passengers on board, was being towed out of a gate at the time.
The collision caused a small fire on the Sunwing’s wing, causing passengers to scream, video footage of the incident showed.
Passenger Adrianna Lobo said the incident had been “really scary”.
She told CTV: “When you see all the fire and the smoke and everybody standing, people didn’t know what to do.”
She only realised how serious the situation had been once she was out of the plane.
“I started crying because I realised what happened,” she said.
None of the passengers were injured but the airport said in a statement that one of its firefighters was being treated in hospital.
Spokeswoman Lauren Stewart said that emergency crews were “on hand and responded immediately”.
The 168 WestJet passengers were all taken safely to the terminal.
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Canada’s Transportation Safety Board is investigating the collision.
Toronto has been among the cities experiencing extreme winter weather, with temperatures down to -23C.