Federal Officials Tell Airlines to Refund Passengers over Canceled Flights

Caribbean News…
05 April 2020 7:40am
empty plane seats

Federal officials on Friday ordered airlines to reimburse customers for canceled flights, saying a growing number of passengers are complaining amid the coronavirus pandemic that airlines are providing travel credits rather than refunds.

According to CNN, the US Department of Transportation did not say how many claims it has substantiated, but it did direct carriers in an enforcement notice "that passengers should be refunded promptly when their scheduled flights are cancelled or significantly delayed."

The government said it would "exercise its prosecutorial discretion" and allow airlines time to contact customers, update policies and properly train staff.

"The Department is receiving an increasing number of complaints and inquiries from ticketed passengers, including many with non-refundable tickets, who describe having been denied refunds for flights that were cancelled or significantly delayed," the notice read.

Customers are allowed to receive a refund when airlines cancel or significantly delay flights. The requirements also apply when government restrictions prohibit flying, the notice said.

The rules do not apply to customers who decide on their own against flying because, for example, of concern over the coronavirus, the CNN report indicates.

Airlines canceled significant portions of their schedules as demand plummeted. By late February, customers were canceling more flights than they were booking, according to the industry group Airlines for America.

The mass cancellations mean airlines owe customers a substantial amount. Worldwide, airlines owe their customers $35 billion in refunds and credits this financial quarter, according to the International Air Transport Association. Different regions have different refund and credit requirements.

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