DOT: Airlines Doing Better at Refunding Unused Tickets

In a first-person opinion piece for USA Today, U.S. Department of Transportation Secretary Elaine Chao said improvements are being made by airlines to return cash refunds to passengers whose air travel was disrupted by the COVID-19 crisis.

When travel restrictions and the lowered demand for flying combined to practically bottom out the industry, one of the big issues was airlines’ policy of giving customers travel credits instead of returning payment.

It became contentious when many travelers realized they might not fly again this year, or couldn’t work a vacation trip into a new time frame, particularly when given just one year to use the credit.
They wanted their money back.

After much criticism, Chao on April 3 issued an enforcement notice that airlines are obligated to issue prompt refunds for cancelled or significantly delayed flights.

“COVID-19 has caused unprecedented airline industry disruption, but that does not let them off the hook for record consumer complaints. Airlines need passengers to keep flying,” Chao wrote. “So in response to DOT’s actions, and to avoid further alienating customers, improvements are being made in refund processes.

Noting that normal passenger volume in March and April slipped to just four percent and that even now there is only 18 percent of passengers taking to the air compared to last year, Chao said that “American needs its airlines to keep flying.”

She also addressed health concerns about getting back in the air, another factor keeping many passengers grounded. Chao said the carriers are also working with DOT, the Federal Aviation Administration and the Centers for Disease Control and Prevention to refine COVID-19 safety protocols to make passengers and aviation workers safer.

“The urgent need to protect passengers from COVID-19 and make them feel financially secure from flight cancellations and delays, cannot wait for years-long rulemaking or investigations,” she wrote. “That’s why DOT has already taken pro-consumer action on refunds. And that’s why, in the past month, DOT has distributed nearly 100 million cloth facial coverings to airports and aviation workers. I have personally spoken with all the major airlines to reinforce the Department’s consumer protection rules and to emphasize the importance of consistently following public health requirements for the welfare of passengers and crew. These actions may not go far enough to suit some partisan critics. Nevertheless, any voice keeping the heat on for consumers is welcome.”