Congressman Tim Ryan Demands Airlines Start Following the Law and Provide Cash Refunds, Not Just Credits

Washington, D.C. – Congressman Tim Ryan (OH-13) today sent a letter to the CEO’s of major airlines in the United States calling on them to ensure that their companies are following the law and providing cash refunds to travelers on cancelled flights—not just credits. Just a few weeks ago, Congress passed the CARES ACT, which provided the airline industry with a $25 billion bailout.

Congressman Ryan noted that his offices have been receiving letters and phone calls from travelers who are upset with the refund policies of the airline industry during this unprecedented time, and then for not adhering to the Department of Transportation’s Contract of Carriage, which requires them by law to provide cash refunds for flights they’ve cancelled.  

“As you may be aware, the ongoing pandemic is placing enormous financial strain on millions of Americans, and families need cash to pay for essentials such as food, housing, and medical care. In light of this pressing need, the Department of Transportation rules, and the unprecedented $25 billion bailout that the airline industry just received from Congress, I believe your company has both moral and legal responsibilities to provide real refunds to consumers, not just travel vouchers,”wrote Congressman Ryan.

The airlines receiving the letter include:
American Airlines
Delta Airlines
United Airlines
Southwest Airlines
Frontier Airlines
Spirit Airlines
JetBlue Airways
Alaska Airlines
Allegiant Air
Hawaiian Airlines
Sun Country Airlines

Read the text of Congressman Ryan's letter below.

Doug Parker
CEO
American Airlines
P.O. Box 619616
DFW Airport, TX 
75261-9616

Dear Mr. Parker,

I write on behalf of my constituents who have brought numerous concerns to my attention regarding issues receiving refunds during this unprecedented time. 

Current U.S. Department of Transportation Contract of Carriage rules dictate that airlines must issue cash refunds to customers if the airline cancels their flight. Unfortunately, I understand not all airlines are following through with this reimbursement. As you may be aware, the ongoing pandemic is placing enormous financial strain on millions of Americans, and families need cash to pay for essentials such as food, housing, and medical care. In light of this pressing need, the Department of Transportation rules, and the unprecedented $25 billion bailout that the airline industry just received from Congress, I believe your company has both moral and legal responsibilities to provide real refunds to consumers, not just travel vouchers. 

I am pleased that most domestic airlines have taken steps to temporarily waive fees for coronavirus-related changes and cancellations. However, travelers who cancel their flights are finding that they receive only airline credits, not cash refunds. Unfortunately these travel vouchers do the public little good in this time of emergency, especially when airlines require their redemption in a very short timeframe. Americans need money now to pay for basic necessities, not temporary credits towards future travel.

If your company were to hold onto travelers’ payments for canceled flights instead of issuing cash refunds, I would find this action completely unacceptable, especially in light of the $25 billion bailout that the airline industry just received from Congress. I urge you to offer cash refunds for all flight cancellations – regardless of who initiated the cancellation – so that Americans can better weather this crisis.

I respectfully request that you respond to the following questions by April 15, 2020:

1.     Please estimate the total value of all travel vouchers and credits you have issued during the coronavirus pandemic.

2.     Please estimate the total number of flights that your airline cancelled during the COVID- 19 crisis, including flights cancelled due to travel restrictions implemented by countries globally.

3.     Will your airline commit to providing full cash refunds to travelers whose flights are cancelled during the coronavirus outbreak, including refunds in lieu of travel credits to those who have already received but not used those credits during this pandemic? If not, why not? 

4.     Will your airline commit to providing full cash refunds to travelers who cancel their travel during the coronavirus outbreak, including refunds in lieu of travel credits to those who have already received but not used those credits during this pandemic? If not, why not?

5.     For international travelers, will your airline commit to providing full cash refunds to any travelers who experience flight cancellations due to COVID-19 travel restrictions implemented globally?

6.     If you will not issue real cash refunds, will your airline commit to making any travel credits valid indefinitely? If not, why not?

Thank you for your attention to this important matter. 

Sincerely,

Tim Ryan
Member of Congress 

CC: 

Delta Air Lines
United Airlines, Inc.
Southwest Airlines
Frontier Airlines
Spirit Airlines
JetBlue Airways
Alaska Airlines
Allegiant Air
Hawaiian Airlines
Sun Country Airlines

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