US fines British Airways $1.1 million over delayed refunds
Reuters
Published Jun 01, 2023 02:19PM ET
Updated Jun 01, 2023 10:01PM ET
By David Shepardson
WASHINGTON (Reuters) - The U.S. Transportation Department (USDOT) said on Thursday it is fining British Airways $1.1 million for failing to provide timely refunds to passengers for flights to and from the United States during the COVID-19 pandemic.
Since March 2020, USDOT received over 1,200 complaints alleging British Airways failed to provide timely refunds. British Airways, which is owned by IAG (LON:ICAG), denied the allegations.
USDOT said it would credit British Airways $550,000 toward the penalty because the airline in 2020 and 2021 issued more than $40 million in refunds to customers with nonrefundable tickets. USDOT said the fine "establishes a strong deterrent to future similar unlawful practices by British Airways and other carriers."
British Airways said it acted lawfully at all times and offered customers flexibility to rebook travel or claim refunds if flights were canceled.
USDOT said consumers were unable to get through to customer service agents when calling the carrier for several months because British Airways failed to maintain adequate customer service phone lines.
The airline said Thursday that "at the height of the unprecedented pandemic – when we were unfortunately forced to cancel thousands of flights and close some call centers due to government restrictions – our customers experienced slightly longer wait times to reach customer service teams."
USDOT has been fining airlines it says failed to provide timely refunds.
Last month, USDOT fined LATAM Airlines (OTC:LTMAY) Group $1 million after the airline and affiliates over delayed refunds.
USDOT said since March 2020, it received more than 750 complaints alleging LATAM, the biggest carrier in Latin America, failed to provide timely refunds for U.S. flights.
In January, USDOT said it planned to seek higher penalties for airlines violating consumer protection rules, vowing to "deter future misconduct by seeking higher penalties that would not be viewed as simply a cost of doing business."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.