On Monday, the Department of Transportation imposed fines totaling approximately $607 million on six airlines for failing to provide timely refunds to passengers whose flights were significantly disrupted due to the pandemic.
In a “historic enforcement action,” Frontier Airlines, Air India, TAP Portugal, Aeromexico, El Al, and Avianca faced over $7.25 million in civil penalties and were required to disburse more than $600 million in refunds to passengers. U.S. Transportation Secretary Pete Buttigieg emphasized the importance of prompt refunds when flights are canceled, stating, “We’ll take action to hold airlines accountable for American travelers and ensure passengers receive their money back.”
Cancellations can be frustrating enough without the additional hassle of fighting for refunds or waiting for months to receive them. Budget carrier Frontier Airlines was hit hardest, owing $222 million in refunds and a $2.2 million penalty. Air India was ordered to refund $121.5 million and pay a $1.4 million fine.
A Frontier spokesperson, Jennifer de la Cruz, noted that the airline has issued over $92 million in refunds, credits, and vouchers to customers who voluntarily canceled non-refundable tickets during the pandemic, despite those customers not being legally entitled to a refund under U.S. law. She added that Frontier “will make an additional out-of-pocket payment of $1 million,” after receiving a goodwill refund credit of $1.2 million.
Though the $600 million in refunds have been disbursed, some passengers may still be owed money, according to a DOT representative speaking to Newsweek. “If consumers haven’t received a required refund or haven’t been told by the airlines how to get their refund, they should file a complaint with us,” the spokesperson urged. Passengers may also submit refund requests directly to Frontier, TAP Portugal, Air India, Aeromexico, El Al, and Avianca.
As the holiday season approaches, Buttigieg reassured travelers at a Monday news conference that the DOT is committed to protecting their interests—not just by ensuring safety but also by enforcing critical customer service standards.
This latest development is part of the DOT’s ongoing efforts to streamline refunds for air travelers. In August, Buttigieg proposed a requirement for airlines to offer non-expiring travel vouchers or credits to customers unable to travel due to circumstances involving serious communicable diseases. Subsequently, in September, the DOT rolled out a dashboard showcasing each airline’s commitments regarding services and amenities in case of controllable cancellations and delays.
