DOT PROPOSES NEW SIGNIFICANT CIVIL PENALTIES AGAINST SIX AIRLINES FOR DELAYS IN PROVIDING REFUNDS
December 22, 2022
On November 14, 2022, DOT issued a press release announcing its decision to assess over $7.25 million in civil penalties against six airlines for alleged “extreme delays in providing refunds” to passengers for cancelled or significantly delayed flights. The airlines that have been fined and the amounts of civil penalties assessed are as follows:
- Frontier – $222 million in required refunds paid and a $2.2 million penalty
- Air India – $121.5 million in required refunds paid and a $1.4 million penalty
- TAP Portugal – $126.5 million in required refunds paid and a $1.1 million penalty
- Aeroméxico – $13.6 million in required refunds paid and a $900,000 penalty
- El Al – $61.9 million in required refunds paid and a $900,000 penalty
- Avianca – $76.8 million in required refunds paid and a $750,000 penalty
DOT noted that the fines imposed are part of its ongoing efforts to make sure that American passengers receive refunds when they are due given the large number of complaints the Department received since the beginning of the COVID-19 pandemic related to refunds for significantly changed or cancelled flights. DOT has also notably decided to impose the civil penalties on the six airlines despite them having already paid back more than $600 million in refunds to passengers. To date, DOT has assessed more than $8 million in civil penalties in 2022, which is the largest number of penalties ever issued by DOT in a single year. DOT also noted that it expects to issue additional civil penalties for consumer protection violations before the end of the year.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
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