The US Department of Transportation has imposed what it claims are historic enforcement actions against six airlines, which collectively paid more than half a billion dollars to people who were owed a refund due to a canceled or significantly changed flights. More than $600 million in refunds were returned to airline passengers under DOT rules backed by the unusual enforcement actions.
In a mumbled ‘two cheers for US flag carriers,’ only one US airline was fined – Frontier. Collectively, six airlines were only fined $7.25 million in total much to the dismay of the many consumer groups critical of airline practices. Frontier at a $2.2 million penalty paid the largest fine.
These long, overdue fines announced this week are part of DOT’s recent effort to ensure Americans receive the refunds they are owed from airlines. Since the beginning of the COVID-19 pandemic, DOT has received a surge of complaints from air travelers about airlines’ failures to provide timely refunds after they had their flights canceled or significantly changed. Why it took so long is an open issue.
With the latest fines, the DOT’s Office of Aviation Consumer Protection has assessed $8.1 million in civil penalties in 2022, the “largest amount ever issued in a single year” by that office.
“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,” said US Transportation Secretary Pete Buttigieg. “A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund.”
The fines assessed and Required Refunds
- Frontier – $222 million in required refunds paid and a $2.2 million penalty.
- Air India – $121.5 million in required refunds paid and a $1.4 million penalty.
- TAP Portugal – $126.5 million in required refunds paid and a $1.1 million penalty.
- Aeromexico – $13.6 million in required refunds paid and a $900,000 penalty.
- El Al – $61.9 million in required refunds paid and a $900,000 penalty.
- Avianca – $76.8 million in required refunds paid and a $750,000 penalty.
A majority of the assessed fines will be collected in the form of payments to the Treasury Department, with the remainder credited on the basis of payments to passengers beyond the legal requirement. DOT said its efforts have helped lead to hundreds of thousands of passengers being provided with more than half a billion dollars in required refunds. The Department expects to issue additional orders assessing civil penalties for consumer protection violations this calendar year.
All of the consent orders are available at www.regulations.gov, docket number DOT-OST-2022-0001.
DOT Imposes Millions in Airline Fines for Cancellations. Paltry Penalties for an Abundance of Abuses
The US Department of Transportation has imposed what it claims are historic enforcement actions against six airlines, which collectively paid more than half a billion dollars to people who were owed a refund due to a canceled or significantly changed flights. More than $600 million in refunds were returned to airline passengers under DOT rules backed by the unusual enforcement actions.
In a mumbled ‘two cheers for US flag carriers,’ only one US airline was fined – Frontier. Collectively, six airlines were only fined $7.25 million in total much to the dismay of the many consumer groups critical of airline practices. Frontier at a $2.2 million penalty paid the largest fine.
These long, overdue fines announced this week are part of DOT’s recent effort to ensure Americans receive the refunds they are owed from airlines. Since the beginning of the COVID-19 pandemic, DOT has received a surge of complaints from air travelers about airlines’ failures to provide timely refunds after they had their flights canceled or significantly changed. Why it took so long is an open issue.
With the latest fines, the DOT’s Office of Aviation Consumer Protection has assessed $8.1 million in civil penalties in 2022, the “largest amount ever issued in a single year” by that office.
“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,” said US Transportation Secretary Pete Buttigieg. “A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund.”
The fines assessed and Required Refunds
A majority of the assessed fines will be collected in the form of payments to the Treasury Department, with the remainder credited on the basis of payments to passengers beyond the legal requirement. DOT said its efforts have helped lead to hundreds of thousands of passengers being provided with more than half a billion dollars in required refunds. The Department expects to issue additional orders assessing civil penalties for consumer protection violations this calendar year.
All of the consent orders are available at www.regulations.gov, docket number DOT-OST-2022-0001.