Transportation Department Goes After Airlines Withholding Refunds

Under orders from the White House, the Transportation Department is cracking down on airlines withholding refunds for pandemic-related flight cancellations. According to the department on Thursday, they have 18 pending investigations against airlines that failed to provide timely refunds.

In a report submitted to the White House, the Transportation Department is still reviewing 30,100 complaints. However, the department didn’t name the airlines that are allegedly withholding refunds.

According to the report, “The department has devoted considerable time, energy, and effort to securing relief for consumers and holding airlines accountable”.

Airlines Withholding Refunds

The department already finished investigating the complaints involving Air Canada and United Airlines.

In June, the department was seeking a fine of $25.5 million from Air Canada. Based on their investigation, the carrier failed to provide timely refunds for flights to or from the US. Air Canada responded by urging the department to dismiss the complaints.

The carrier said that the department’s “arbitrary conduct flatly contradicts years of well-established law”. On Thursday, the department clarified that they are still having settlement negotiations with Air Canada.

In June, the Transportation Department announced that it was investigating an undisclosed number of US and foreign airlines. On Thursday, the department announced that they are conducting a separate investigation on four carriers that filed for bankruptcy protection. They are looking at “options on how passengers who did not receive refunds when the carriers canceled their flights may be compensated”.

In January, the department finished its investigation on United Airlines. According to the department, United “took prompt corrective actions, resulting in thousands of passengers who had initially been denied refunds receiving the required refunds in or around June 2020”.

Complaints Increased by 500 Percent

Airline passengers submitted over 100,000 complaints to the Transportation Department last year. That’s a 500% jump from the previous year. To accommodate the added workload, the department is looking to increase the number of staff that handles consumer complaints by 38%. Also, the department said that they are going to provide rules on refunds for consumers who can’t travel due to current government restrictions.

If you have any complaints regarding airlines withholding refunds, you can file your complaint via the agency’s website.