Photo Credit: TN
Airlines To Pay $600 Million In Refunds Or Get Fined By The DOT
Passengers affected by canceled and delayed flights this year have been refunded over $600 million. Although the refunds have been enforced, six of the major airlines have been slow in paying back customers. As of now the U.S. Department of Transportation is taxing the airlines that are delayed in paying back the refunds according to federal officials.
Pete The Enforcer
“When a flight gets canceled, passengers seeking refunds should be paid back promptly. Whenever that doesn’t happen, we will act to hold airlines accountable on behalf of American travelers and get passengers their money back. A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund,” stated Transportation Secretary Pete Buttigieg.
Pay Yo' Fare
Airlines such as Frontier and five other foreign carriers will be fined a total of $7.25 million for “delaying refunds so long that they violated consumer-protection rules,” according to the DOT.
The other airlines penalized were Air India, TAP Air Portugal, Aeromexico, El Al and Avianca, with the Denver-based Frontier required to pay $222 million in refunds and a $2.2 million penalty.
Cancelations and Delays All Summer '22
The airline industry has come under scrutiny after COVID restrictions have been lifted. The demand for travel skyrocketed to pre-pandemic levels and the lack of staffing has caused flights to cancel and delay the whole summer.
Complaints from U.S passengers are at an all- time high this year. The DOT has reported that many of the customers are complaining about not receiving their refunds as of yet.