US fines airlines $7 million for Covid refund delays
Airlines have ordered to pay $7.25 million in fines for ‘extreme delays’ in issuing Covid refunds to passengers.
Five foreign airlines: Air India, TAP Portugal, Aeromexico, El Al and Avianca were fined, along with US carrier Frontier Airlines.
“Our job at DOT is to hold airlines accountable for customer expectations, many of which are a matter of law and regulation,” Transportation Secretary Pete Buttigieg said.
A total of $8.1 million in fines has been imposed so far in 2022.
The DOT received thousands of consumer complaints about refunds in August.
“It shouldn’t take an enforcement action to get airlines to pay refunds that they’re required to pay,” Buttigieg added.
The department will continue ‘ratcheting up the penalty side ‘if airlines continue delaying refunds.
Buttigieg says more fines are expected as investigations are still ongoing.
The airlines owed more than $600 million in refunds since the start of Covid-19.
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