Airlines Refuse to Give Cash Refunds for Canceled Flights During COVID-19 Pandemic

Fran Sanders, Tech Times 07 July 2021, 08:07 am

Airlines continue to refuse to give cash refunds to consumers with canceled flights during the COVID-19 pandemic, and the U.S. government is working on a solution.

Payback, comeuppance, retribution, poetic justice, or simply "just deserts" - the U.S. airlines might soon face the consequences of their miserly move to deny cash refunds for customers.

The COVID-19 pandemic took the world by storm, which means that planned trips had to be canceled in line with the "stay-at-home" setup. With this, tens of thousands of airline consumers had to cancel their flights and would like to refund their tickets.

However, some airlines refuse to give cash refunds to affected customers.

Why Airlines Refuse To Offer Cash Refunds

According to Forbes, a good amount of passengers who purchased plane tickets before the pandemic forced everyone to stay home did not get full cash refunds from their airlines of choice.

However, it is mainly because these consumers did not buy higher-priced plane tickets that offer flexibility in changing or canceling their flights without additional financial penalties.

Forbes also reported some of the consumers were those with flights that were instantly canceled by the airlines even before they can cancel it themselves. These passengers received full cash refunds, although some were only offered vouchers that can be used for future travels.

Airlines Are Firm on Non-Refundable Tickets

To make consumers understand, airlines have repeatedly said that non-refundable tickets before the pandemic will remain non-refundable during the pandemic, which is a dire and unusual circumstance.

Several industry leaders sided with the airlines, arguing that giving cash refunds to such passengers will force the airlines to perform an act that they are not required to complete.

The supposed passengers who hold non-refundable tickets also face the horrible fact that the vouchers they received from the airlines will soon expire.

How The Biden Administration Plans To Resolve The Issue

According to the media outlet, the Biden Administration is currently working on new rules that will oblige all airlines to refund any fees that passengers have already paid to delayed check bags, in-flight Wi-Fi services, and other services that require passengers to pay extra fees.

The proposed law would require every airline to refund any fee or service that a carrier fails to deliver.

Although it is not directly proportional or linked to the decision of U.S. airlines to hold cash refunds, the law will force these airlines to do the right thing, which is to refund the services that were not used.

The Senate's Effort to Help Consumers

Senator Richard Blumenthal and Senator Ed Markey lead the Senate's effort to help out consumers with non-refundable tickets. Blumenthal and Markey are planning to require the airlines to pay cash refunds on all fees not used by the consumers.

They were also part of the Senate's effort to pass a similar rule back in 2018, but the bill did not pass. The tandem has also proposed other bills against airlines to protect consumers.

This article is owned by Tech Times

Written by Fran Sanders