Eighteen airlines operating in the United States are under investigation for not promptly issuing refunds for customers affected by flight cancellations caused by the coronavirus pandemic, the Department of Transportation announced this week.
A report released Thursday detailed the agency’s progress in enforcing customer refund policies, including a steep fine imposed against one carrier and the corrective actions other airlines have taken to comply.
The Transportation Department opened up the inquiries under an executive order signed in July directing the agency “to address the failure of airlines to provide timely refunds for flights cancelled as a result of the COVID-19 pandemic.” Investigations into 20 airlines were opened, with two that have concluded.
An investigation into Air Canada closed with the agency issuing a fine against the airline “for extreme delays in providing required refunds to passengers.” Settlement negotiations with the carrier are ongoing, but the government initially sought a total of $25.5 million in response to 5,110 violations. Passengers waited anywhere from five months to 13 months to receive refunds from the company, the report said.
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The agency also explained the conclusion of an investigation into United Airlines, saying it determined the company took corrective action and promptly provided thousands of customers with refunds after they were initially denied.
Nine airlines have amended their policies “to make clear that passengers are entitled to a refund when a carrier cancels a flight or makes a significant schedule change and are providing refunds as required,” the agency said. Those companies initially offered flight vouchers or travel credits rather than cash refunds.
Reports of customers having difficulty securing refunds skyrocketed during the pandemic, with the DOT receiving 102,561 refund-related complaints in 2020 — the highest number on record.
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The aviation industry has received significant pressure from both regulators and elected officials on the refund issue. Democratic Sens. Ed Markey and Richard Blumenthal urged airlines in May to offer cash refunds for pandemic-related cancellations, saying they should make all pandemic-related flight credits valid indefinitely “at a minimum.”
