The Transportation Department issued and enforcement notice obligating the Airlines to pay out refunds for flights they have canceled.
Instead of providing the refund, Airlines are offering travel vouchers or credit to fly in the future. An increase in complaints from passengers who have been denied refunds, prompted DOT to take this measure.
DOT said that the carriers are obligated to refund flights canceled or significantly delayed. The focus is not on the fact that the flight disruptions are within our outside the carrier’s control, but on the fact that the cancellation is no fault of the passenger.
The COVID-19 Pandemic has already caused a $35 billion refund liability to the Airline industry worldwide, according IATA’s evaluation.