U.S. DEPARTMENT OF TRANSPORTATION ISSUES NEW FAQ REGARDING AIRLINE REFUNDS
June 1, 2020
On May 12, 2020, DOT issued a Frequently Asked Questions Regarding Airline Ticket Refunds Given the Unprecedented Impact of the COVID-19 Public Health Emergency on Air Travel, available here. The document provides answers to some of the most common questions about the Department’s April 3, 2020 enforcement notice to help consumers understand their rights and to ensure airlines and ticket agents understand their obligations with respect to COVID-19 related cancellations and refunds. Of particular interest:
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DOT confirmed that the FAQs do not have the force and effect of law and are not meant to bind carriers or ticket agents in any way. DOT did however note that such entities can rely on the FAQs as a safeguard from Departmental enforcement.
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DOT confirmed that neither the term “significant change” nor the term “cancellation” is defined in regulation or statute, and that these terms are defined (if at all) differently by carriers when fulfilling their obligation to provide refunds. DOT further stated that carriers are free to develop reasonable interpretations of what those terms mean (although carriers are expected to honor those interpretations when implementing refund obligations).
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DOT confirmed that, with respect to a voluntary change or cancellation where a flight is still operating, passengers are “generally not entitled to a refund or a travel voucher for future use on the airline” even if the passenger’s decision to change or cancel is made due to concerns related to the COVID-19 public health emergency
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The FAQs note that carriers and ticket agents can offer consumers alternatives to a refund, such as credits or vouchers, so long as the option of a refund is also offered and clearly disclosed if the passenger is entitled to a refund.
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DOT reiterated that it recognizes the unprecedented impact of COVID-19 on the industry, and stated that it will exercise enforcement discretion, and will first provide carriers and ticket agents an opportunity to become compliant.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Andy Orr (aorr@eckertsemans.com or 202-659-6625).
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