In the wake of the coronavirus shutdowns, few consumers who had to cancel air travel have received refunds.
Instead, most airlines have been giving customers vouchers for future flights.
But with so much uncertainty ahead, many travelers don’t want the vouchers. They just want their money back.
Consumer Reports and U.S. PIRG are calling on airlines to provide customers with full refunds instead of the vouchers on all flights that didn’t happen because of the coronavirus crisis. They presented petitions to the airlines with more than 250,000 consumer signatures in support of the policy changes.
“Despite receiving a $50 billion taxpayer-funded industry bailout as part of the CARES Act passed by Congress, the majority of airlines are only offering vouchers instead of refunds to passengers who cancelled their flights because of concerns about the coronavirus pandemic,” the groups said. “While passengers on flights cancelled by the airlines are entitled to a full refund under federal law, some carriers are offering vouchers as the default option, forcing passengers to take extra steps to get the cash refund they deserve.”
Sen. Edward Markey joined the groups in making the request to the airlines on the same day he introduced legislation to make such refunds mandatory.
The U.S. Department of Transportation Tuesday said in a typical month, the department receives approximately 1,500 complaints about airlines. But in March and April, it received more than 25,000 complaints and inquiries.
It issued a second Enforcement Notice Tuesday about coronavirus-related airline ticket refunds and vouchers, noting that phrases in current law allow airlines to widely interpret how and if certain refunds should be handled.
“Passengers who purchase a non-refundable ticket on a flight to, within, or from the United States that is still being operated without a significant change, but would like to change or cancel their reservation, are generally not entitled to a refund or a travel voucher for future use on the airline,” it said. “This is true even if the passenger wishes to change or cancel due to concerns related to the COVID-19 public health emergency.”
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Last week, airline officials gave testimony to the Senate Committee on Commerce, Science and Transportation.
“They feel betrayed,” Sen. Richard Blumenthal said of consumers. “When you come to us and ask for more assistance, my mind goes back to the bailout we’ve just given you. In effect, you are — forgive me — screwing the very taxpayers whose money is going into your pocket.”
In April, Blumenthal, Markey and Sens. Elizabeth Warren, Chris Murphy and Kamala Harris, who co-sponsored the new bill, announced the findings of an examination of airline policies since the start of the pandemic.
Their investigation found that while every airline is offering cash refunds when the company itself cancels a flight, as required by federal law, only Allegiant and Spirit were offering refunds to passengers who “voluntarily and proactively cancel their own tickets during the coronavirus crisis.”
“We are absolutely outraged that so few airlines are willing to offer real cash refunds to consumers who must cancel their tickets,” the senators said in a joint statement. “Although most companies refused to say just how much money they are sitting on in the form of travel vouchers, we estimate that the airlines could be holding onto over $10 billion of hard-earned money from American travelers."
"If these companies released that money back to the public, it would provide a significant stimulus for struggling families. That’s why we once again urge the airlines to end their anti-consumer policies and offer real refunds during this emergency,” the senators said.
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Karin Price Mueller may be reached at bamboozled@njadvancemedia.com.
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