09/10/2021 | Press release | Distributed by Public on 09/10/2021 07:57
Today, the U.S. Department of Transportation (USDOT) is releasing a report on its work to address failures of airlines to provide timely refunds for flights cancelled or significantly changed as a result of the COVID-19 pandemic. This report was mandated by President Biden's Executive Order on Promoting Competition in the American Economy that he issued in July.
Airlines and ticket agents have a legal obligation to provide refunds to consumers if the airline cancels or significantly changes a consumer's flight. However, in the early months of the COVID-19 pandemic, airlines had difficulty processing the significant volume of refund requests that they received. Many airlines were also initially reluctant to provide the required refunds.
This resulted in USDOT receiving a flood of complaints about carriers' failures to provide refunds. In the five years before the COVID-19 pandemic, the Department received an average of 17,420 aviation consumer complaints annually with refund complaints accounting for approximately 8.25% of the total. In calendar year 2020, the Department received a total of 102,561 consumer complaints-the highest number on record and an increase of 568.4% from the prior year. The volume remained high for the first half of 2021 with the Department receiving a total of 22,357 consumer complaints. Of the complaints received over this 18 month period, 84.3% concerned refunds.
Today's report details how the USDOT has devoted considerable time, energy, and effort to ensuring families get their money back and holding airlines accountable. This includes:
To date these efforts have resulted in:
DOT is planning additional steps to protect consumers including:
To read more about USDOT efforts, read the report HERE. For more information on the President's Executive Order Promoting Competition in the American Economy, read the fact sheet HERE.
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