US airlines flying within the US and internationally have been ordered to pay refunds for cancelled flights due to COVID-19 travel disruptions, or face “enforcement action”, says a notice from the US Department of Transportation (DOT) issued on April 3.
Globally, agents are bearing the brunt of disgruntled passengers who say their money is being unlawfully withheld as more airlines delay refunds on bookings affected by the COVID-19 pandemic.
Iata has recommended that airlines issue vouchers rather than cash refunds, with the association estimating that airlines are facing an estimated US$35bn (R624bn) ticket refund bill.
The DOT notice states: “Airlines must issue prompt refunds to passengers for flights to, within, or from the United States in all cases where the carrier cancels the passenger’s scheduled flight or makes a significant schedule change and the passenger chooses not to accept the alternative offered by the carrier.
“Even in the context of COVID-19 public health emergency, the obligation to provide refunds does not cease when the flight disruptions are outside of the carrier’s control (for example, a result of government restrictions).
“Any airline policy that denies refunds to passengers is in direct violation of the carrier’s obligation.”
The department’s Aviation Enforcement Office would provide liable carriers an opportunity to become compliant before taking further enforcement action where necessary, the notice said.
