Airlines told to be flexible with refund policies
25,000 complaints filed to DOT in March, April
After a surge in traveler complaints about airline ticket refunds during the coronavirus pandemic, the U.S. Department of Transportation issued its second warning in as many months to airlines on Tuesday.
The agency said it has received more than 25,000 air travel service complaints in March and April. That compares to a typical month of 1,500.
“The Department has received an unprecedented volume of complaints from passengers and is examining this issue closely to ensure that airlines’ policies and practices conform to DOT’s refund rules,” U.S. Secretary of Transportation Elaine L. Chao said in a statement. “The department is asking all airlines to revisit their customer service policies and ensure they are as flexible and considerate as possible to the needs of passengers who face financial hardship during this time.”
In April, the agency warned airlines that they are required to refund travelers if their flight is canceled or significantly changed by the airline. A key problem: The DOT does not define significant, so airline policies vary and some are using the lack of clear guidance to get out of issuing refunds.
Because “cancellation” and “significant change” are not defined in the context of ticket refunds, airlines may develop reasonable interpretations of those terms, the DOT said in the enforcement notice.
“However, the Aviation Enforcement Office expects carriers to honor those reasonable interpretations in implementing their refund obligations and will focus its enforcement actions on instances where a carrier has disregarded the requirement to offer refunds, failed to honor its refund policies, or where it is determined that the carrier’s refund policies or practices are otherwise ‘unfair or deceptive,’ ” the DOT said.
The DOT says that when airlines cancel a flight, whether because of a coronavirus public health emergency, a winter storm, a hurricane, mechanical issue or other matter, passengers are eligible for a refund even if they have a nonrefundable ticket, including those restrictive basic economy tickets. The refund must be processed within seven business days if the customer paid by credit card or 20 if they used cash or check.
Airlines don’t always broadcast this option, preferring to rebook a passenger or issue a credit so they retain the revenue.
If you suspect your flight may be scrapped, you would do well to wait until the airline cancels it. Travelers who proactively cancel flights are not eligible for a cash refund, although airlines are issuing travel credits.