Feds Bring New Heat on Airlines Over Refunds


Skift Take

Airlines want to do everything they can do hold onto cash. Many of them are in a rough position. But they still have to honor their pre-Covid-19 policies.

Under the Trump Administration, the U.S. Department of Transportation adopted a laissez-faire approach toward regulation, letting airlines set their own policies and procedures for fees and other charges. But even this government has limits. The regulator again warned U.S. carriers on Tuesday they cannot be so stingy with refunds, no matter how much they want to conserve cash during the worst economic disaster in aviation history. If an airline cancels a customer's flight, or substantially delays their journey, the carrier owes them a refund within seven days, provided the customer paid the airline directly with a credit card, the DOT said in a notice. Blane Workie, the DOT's chief enforcement official, told airlines she was sending a reminder because the government had received a significant number of complaints about a lack of t