Over 20 Airlines Under Investigation for Refund Policies

The U.S. Department of Transportation is still initiating investigations against airlines, after the carriers gave flyers vouchers instead of refunds during the COVID-19 pandemic. The agency is currently initiating 20 airline investigations, with 18 more pending.

Flyers who filed complaints against airlines for how they handled cancelled flights during the COVID-19 pandemic may get some recompense after all, as the U.S. Department of Transportation (DOT) starts their investigation of claims. In a report to the White House Competition Council, the agency announced they would be working through investigating nearly 40 air carriers over refund complaints.

Flyers File Over 30,000 Complaints Over Refund Policies Against Carriers

At the beginning of the pandemic, the DOT notes airlines “…had difficulty processing, in a timely manner, the significant volume of refund requests that they received.” The cancellation and refund requests came from those aboard cancelled flights, flyers holding itineraries which were significantly changed by airlines, or were no longer comfortable flying due to the conditions.

However, instead of applying refunds, many reported getting travel vouchers towards future flights. This led to an incredible surge in complaints, with the DOT receiving over 4,552 percent more relative to the same period pre-pandemic. As a result, they now say they have initiated investigations into 20 airlines, with 18 more pending.

“Beginning in March 2020, the Department began receiving an unprecedented number of complaints and inquiries from ticketed passengers, including many with non-refundable tickets, who describe having been denied refunds for flights that were cancelled or significantly delayed,” the DOT said in the report. “The number of complaints is likely even larger than that received by the Department, as airlines receive significantly more complaints and inquiries directly from consumers.”

To handle the new investigations, the agency will hire a number of temporary employees, as well as extending terms for current part-time staff to handle through the complaints. As a result, DOT hopes to increase their efficiency by 38 percent. In addition, the agency is going through a technology upgrade with the hopes of improving data processing and analysis. The goal is to ultimately handle complaints in a timely manner.

“The Department has made significant progress to ensure that airlines are providing refunds to passengers for flights that have been cancelled or significantly changed as a result of the COVID-19 pandemic,” the department writes in the report. “As a result, thousands of passengers who had initially been denied refunds have received or are receiving the required refunds. However, we have more work to do in this area.”

DOT Continues to Pursue Penalties from Air Canada

Although the DOT is working through refunds, the agency has pursued enforcement action against two carriers: Air Canada and United Airlines. United ultimately allowed complainants to get refunds even if a credit was applied to their cancelled flights, while Air Canada is still contesting the proposed $25 million fine against them.