British Airways fined £877k for delayed US flight refunds amid pandemic
United States regulators have imposed a fine of US$1.1 million (£877,000) on British Airways, following accusations that the airline failed to provide prompt refunds for passengers on flights to and from the US during the COVID-19 pandemic. The US Transportation Department issued the penalty, which British Airways contests.
According to the department, the airline violated federal regulations by not processing refunds in a timely manner for passengers whose flights were cancelled or significantly changed due to the pandemic. It is alleged that British Airways withheld refunds for thousands of passengers, causing financial distress and inconvenience.
In response to the allegations, a spokesperson for British Airways stated, “We are disappointed with the decision, which we believe is unjustified. We have been in regular contact with the Department of Transportation throughout the pandemic to discuss our refund process and we believe we have been compliant with their requirements.”
The spokesperson further added, “We have always been committed to refunding our customers and have processed more than three million refunds since the start of the pandemic, with only a small fraction of these relating to US customers.”
The US Transportation Department, however, maintains that the airline failed to adhere to regulations, stating, “The Department found that British Airways failed to provide refunds promptly and failed to inform passengers of their rights under US law.”
As the pandemic continues to impact the aviation industry, airlines worldwide have faced numerous challenges, including the need to manage customer refunds amid widespread flight cancellations and disruptions. The fine imposed on British Airways serves as a reminder to airlines of their obligations to passengers during these unprecedented times.
While British Airways disputes the allegations and the imposed fine, the airline must now navigate the consequences of this decision and its potential impact on its reputation and customer relations.
