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Global Airline Trade Group Deals Massive Blow to Travel Agencies by Opposing Refunds

Matthew Parsons

Photo Credit: International Air Transport Association CEO Alexandre de Juniac says he now supports airlines that issue vouchers instead of refunds to travel agencies. IATA

Skift Take

The association's nod to airlines that they can withhold cash will not mean much without official government recognition, meaning the refund debate has just become political.

This isn't the news travel agencies were hoping for. The International Air Transport Association has just dealt a fresh blow saying it is now backing member airlines' moves to issue vouchers, not refunds, to cash-strapped travel agencies. "The message I have to deliver is not one that will provide comfort," admitted Alexandre de Juniac, director general and CEO of the association, in an open letter sent on Friday. The association also wants the countries in which it operates its billing and settlement plan — the mechanism by which it channels vouchers and refunds back to travel agencies — to sign up to its proposal.

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So far, three countries have said they will recognize this stance, with De Juniac stating: "Canada, Colombia and the Netherlan

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