USDOT addresses air carrier refund requirements

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In the wake of the COVID-19 pandemic, the U.S. Department of Transportation (USDOT) has issued clarification regarding domestic and foreign airlines remaining obligated to provide passenger refunds.

The USDOT’s Enforcement Notice stipulates refunds should be provided for flights to, within, or from the United States when the carrier cancels the passenger’s scheduled flight or makes a significant schedule change and the passenger chooses not to accept the alternative offered by the carrier.

The airline’s obligation to provide refunds, including the ticket price and any optional fee charged for services a passenger is unable to use, does not cease when the flight disruptions, such as government restrictions, are outside of the carrier’s control.

The USDOT said passengers with non-refundable tickets indicated they have been denied refunds for flights canceled or significantly delayed. The carrier indicated they would receive vouchers or credits for future travel.

The USDOT’s Aviation Enforcement Office will exercise its enforcement discretion and provide carriers with an opportunity to become compliant before taking further action. The Aviation Enforcement Office would monitor airlines’ refund policies and practices and take enforcement action as necessary.

The Enforcement Notice can be accessed on the USDOT website.