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British Airways Faces $1.1 Mn Fine from US for Failure to Provide Covid-Related Refunds

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British Airways Faces $1.1 Mn Fine from US for Failure to Provide Covid-Related Refunds

The US Transportation Department has imposed a $1.1 million (£878,000) fine on British Airways for alleged failure to issue refunds for flights that were cancelled during the coronavirus pandemic. In a legal document, the department stated that the airline did not promptly provide refunds to passengers for abandoned or rescheduled flights to and from the United States in 2020.

Following the imposed fine on Thursday, British Airways responded by stating that it had “acted lawfully at all times” and disputed the allegations made against them. The US Transportation Department’s consent order stated that British Airways’ website directed consumers to contact the airline via phone to discuss refund options, even for flights that were cancelled or underwent significant changes, from March to November 2020.

During this time, British Airways faced issues with their customer service phone lines, resulting in customers being unable to reach their customer service agents for several months. As a consequence, individuals were unable to submit refund requests through the airline’s website as well.

Additionally, British Airways displayed misleading information on its website during the period from March to November 2020, causing customers to unintentionally request travel vouchers instead of refunds. The US Transportation Department has received over 1,200 complaints since March 2020, alleging that British Airways failed to issue timely refunds for cancelled or substantially altered flights to and from the United States.

Thousands of additional complaints and refund requests have been directly received by British Airways from consumers. The airline’s failure to establish a readily accessible method for customers to request refunds for flights that were cancelled or significantly altered created substantial difficulties and delays, leading to many consumers experiencing delays in receiving the refunds they were entitled to.

The US Transportation Department stated that the imposed fine serves as a strong deterrent against future unlawful practices. British Airways will receive a credit of just under £500,000 towards the penalty due to the fact that it issued over $40 million in refunds to customers with non-refundable tickets during 2020 and 2021.

The airline expressed remorse, stating, “We sincerely apologize for any inconvenience caused to our customers during the peak of the unprecedented pandemic. As a result of government restrictions, we were compelled to cancel numerous flights and temporarily close some call centers, leading to slightly extended wait times for our customer service teams.”

“Throughout this period, we consistently adhered to the law and provided customers with the option to reschedule their travel for alternative dates or receive a refund if their flights were cancelled. We are proud to have issued over five million refunds since the beginning of the pandemic.”

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