US says airlines will refund more than $600 million to passengers

 

Largest US The airlines, which accounted for the vast majority of complaints about refunds, avoided fines, and an official said no other U.S. carriers could be considered for potential fines. Carrier is not being checked.

Federal officials said Monday that Frontier Airlines and four foreign carriers have agreed to refund a combined more than $600 million to travelers whose trips were canceled or significantly delayed since the start of the pandemic.

The US Department of Transportation said it has fined the same airlines more than $7 million for delaying refunds that they violated consumer-protection rules.

The largest US airlines, which accounted for the bulk of complaints about refunds, avoided fines, and an official said no other US carriers were being investigated for possible fines.

When airlines canceled vast numbers of flights after the pandemic hit the US in early 2020, consumers inundated the agency with thousands of complaints about their inability to get refunds. This was by far the leading category of complaints.

Transportation Secretary Pete Buttigieg said, "When Americans buy a ticket on an airline, we expect to get to our destination safe, reliable and affordable, and our job at DOT is to hold airlines accountable to these expectations."

The department said Denver-based Frontier Airlines is returning $222 million and paying a $2.2 million civil penalty.

TAP Portugal will refund $126.5 million and pay a $1.1 million fine; Air India to pay $121.5 million in refunds and $1.4 million in fines; Aeromexico will pay $13.6 million and a $900,000 fine; Israel's El Al will pay $61.9 million and a $900,000 fine; Colombia's Avianca will pay $76.8 million and a $750,000 fine, the Department of Transportation said.

"We have more enforcement actions and investigations underway and there may be more news coming in the form of fines," Buttigieg told reporters.

However, there will be no penalty for other US airlines because they responded "promptly" to the Department of Transportation's reminder of their obligation to provide prompt refunds in April 2020, said an assistant with the Department of Transportation's Aviation Consumer Office. said general counsel Blaine Varkey. protection.

"We have no pending cases against other US carriers. The rest of our cases are against foreign air carriers," Varkey said on the same call with Buttigieg.

In 2020, United Airlines had the most refund complaints filed with the DOT – more than 10,000. Air Canada, El Al and TAP Portugal were both above 5,000, followed by American Airlines and Frontier, both above 4,000.

Air Canada launched similar U.S. flights last year. agreed to pay $4.5 million to settle allegations of slow refunds. The Department of Transportation initially sought $25.5 million in that case.