Legislators Demand Airline Cash Refunds During COVID-19 Pandemic

Now that it’s June, airlines still haven’t fully recovered from the loss of travel they experienced in March and April. While more Americans are choosing to fly now that states are reopening, there are still those who are postponing their flights because of COVID-19 concerns. 

Since March, we’ve heard countless stories of Americans proactively canceling their travel plans to comply with stay-at-home orders and struggling to receive cash refunds for their flights. The Department of Transportation has received over 25,000 complaints from travelers on the issue. Unfortunately, many of these Americans are still struggling to secure a reimbursement. So, where’s the money? 

An investigation in April found that major airlines may be sitting on $10 billion in flight cancellations from the pandemic. In May, legislators in both the House and the Senate took action against airlines refusing to refund cancelled travel during the COVID-19 emergency. 

To get a refund, we’ve found that persistence is key. The U.S Public Interest Research Group (U.S. PIRG) created a guide to getting a cash refund for cancelled tickets that you can check out. This has worked for many people, but not all.

Normally, airlines are required by law to give cash refunds when they cancel a flight themselves. Top airlines have even received a multibillion dollar CARES Act bailout. Nonetheless, airlines often give out flight vouchers by default to reschedule flights in the future. As we near July, it seems less likely that it will be safe to fly anytime soon. This puts the burden on consumers to contact airlines and demand the cash refunds they deserve. During a public health crisis, people need this money to pay bills, buy food, and support their communities. 

In May, we teamed up with Consumer Reports, Senator Ed Markey from Massachusetts, and consumer-turned-activist Jen Stansfield to call on airlines to give refunds for flight cancellations. On May 13, we delivered about 250,000 petition signatures on this demand. 

That same day, Senator Markey and five cosponsors proposed the Cash Refunds for Coronavirus Cancellations Act in the Senate. The following week, Representative Steve Cohen from Tennessee proposed a companion bill in the House which now has 36 cosponsors. We are proud to endorse these companion bills that demand cash refunds for ticket cancellations made by travellers to limit the spread of the novel coronavirus.

Many airlines noted that giving out refunds during the pandemic would drive them to bankruptcy. But let’s call their bluff. Senator Markey received positive responses from Spirit and Allegiant airlines, which have stated they will give cash refunds. These are among the smallest airlines in the industry. Markey says if they can do it, so can our largest airlines.

Jen Stansfield, who started the original change.org petition, points out, “We understand that the airline industry is going through an unprecedented economic hardship, but so are we. And we do not have the benefit of a multi-billion dollar taxpayer bailout”.

To help get the refunds travelers deserve, call 202-751-4118 and tell your member of Congress to pass H.R 6965/S.3727, otherwise known as the Cash Refunds for Coronavirus Cancellations Act. Here’s a quick script you can use:

Hi my name is _____, I’m from [city]. I want to ask [legislator] to support the proposed bill demanding cash refunds for coronavirus travel cancellations. [any other personal message] Thanks

While the CDC still recommends staying home and avoiding travel whenever possible, airlines have a responsibility to refund cancelled tickets. This money must be returned to the thousands of Americans who need this support. Airlines are concerned about business, but, Americans cannot prioritize a company’s bottom line above their own livelihoods.