The US Transportation Department says it is continuing to investigate airlines –including Air Canada – in a bid to help airline customers who were wrongfully denied refunds after flights were cancelled or changed during the pandemic.
The department says in a new report that it investigated 20 airlines over failures to issue prompt refunds to customers, and 18 of those probes are still going.
The department disclosed that an examination into United Airlines was dropped in January after the airline took steps resulting in “thousands” of customers getting refunds.
In June, the department announced that it was seeking a US$25.5 million fine against Air Canada, saying the airline improperly delayed refunds for more than 5,000 passengers by up to 13 months. The airline is fighting the penalty.
The Transportation Department did not identify the other 18 airlines still under investigation in Thursday’s report to the White House, but a footnote identified 10 US carriers and 15 foreign ones — a who’s who of the industry — that it contacted about the matter last year.
The department says it received about 30,000 complaints over airline refunds. The agency says at least nine airlines changed their policies to clarify that passengers are entitled to refunds, not just travel vouchers, when the airline cancels their flight or significantly changes the flight’s schedule.
In Canada, Air Canada agreed in April to offer customer refunds as a part of a conditional deal to secure funding from the federal government, however, many customers are critical of the airline while still awaiting payment.