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Under federal law, airlines are supposed to issue prompt refunds for cancelled flights, but that doesn’t always happen.

Flight cancellations have been so bad, these 6 airlines were required to pay $600 million in refunds

[Photo: Artur Tumasjan/Unsplash]

BY Michael Grothaus1 minute read

The U.S. Department of Transportation (DOT) said today that six airlines were required to refund passengers over $600 million due to flights that were canceled or “significantly changed.” An “enforcement action” against the airlines came after thousands of passengers did not receive prompt refunds for their canceled or significantly changed flights, the DOT said.

The department said it was also assessing civil penalties against the carriers—to the tune of $7.25 million—for “extreme delays” in doling out the refunds. Under DOT rules, airlines are required to provide refunds for canceled flights in a timely manner. Canceled flights, of course, have increased dramatically since the beginning of the pandemic.

According to a press release by the DOT, six airlines fall under the order. Those include:

  • Frontier Airlines, which was required to refund $222 million worth of tickets
  • Air India, which was required to refund $121.5 million
  • TAP Portugal, which was required to refund $126.5 million
  • Aeromexico, which was required to refund $13.6 million
  • El Al, which was required was refund $61.9 million
  • Avianca, which was required was refund $76.8 million

As you can see from the list, only one of those airlines—Frontier—is a U.S.-based carrier. However, federal law applies its rules to all airlines that operate both from and within the United States.

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Announcing the ruling, U.S. Transportation Secretary Pete Buttigieg said, “When a flight gets canceled, passengers seeking refunds should be paid back promptly. Whenever that doesn’t happen, we will act to hold airlines accountable on behalf of American travelers and get passengers their money back. A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund.” 

The DOT also notes, “It is unlawful for an airline to refuse refunds and instead provide vouchers to such consumers.”

The DOT did not provide a timeline for the enforcement or penalties. However, a spokesperson confirmed with Fast Company that the refunds have already been paid. If you were promised a refund by one of the above airlines but didn’t receive one, you can file a complaint at the DOT website.

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ABOUT THE AUTHOR

Michael Grothaus is a novelist and author. He has written for Fast Company since 2013, where he's interviewed some of the tech industry’s most prominent leaders and writes about everything from Apple and artificial intelligence to the effects of technology on individuals and society. More


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