WASHINGTON: Eleven US airlines issued $12.84 billion in cash refunds to customers in 2020 as the coronavirus pandemic upended the travel industry, the head of industry trade group Airlines for America (A4A) said in a letter to lawmakers.
Airlines have faced a backlash from passengers and some lawmakers over their handling of redemptions for flights cancelled during the pandemic.
Earlier this month, Senators Edward Markey and Richard Blumenthal called on carriers to issue cash refunds whether flights were cancelled by the airline or traveller.
Nicholas Calio, A4A chief executive, acknowledged that many carriers encouraged customers to accept vouchers for future travel instead of cash, but said it was not done with “ill intent” but rather to prevent potential bankruptcy declarations.
“The facts clearly show that US airlines have maintained a steadfast commitment to the travelling public over the course of the pandemic and routinely issued refunds in accordance with all federal laws and regulations,” Calio said.
Calio said the cash refunds, which accounted for about 20 per cent of airline revenues last year, came on top of billions of dollars of travel credits that are now being used “at a rapid clip” to book fresh flights.
— Reuters
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