Tag Archives for trip cancellation.
It takes a lot to get people out of the habit of staying in, and overcoming the fear that’s been built up about regular activities like haircuts, let alone travel. Six weeks ago I wrote that airlines are going to have to extend flexible booking policies or customers won’t have the confidence to buy travel in the face of uncertainty.
We’re now seeing policies become even more generous, and more flexible.
Five Senators want customers to get their money back for trips they voluntarily cancelled, because we bailed out the airlines and because people need the money.
Since this is proposed by 5 Democratic Senators in a Republican Senate, and two are potential VP nominees, the chances of passages are zero.
The E.U. acknowledges that travel vouchers are a bad deal for customers. They might expire unused. Fares might go up. And airlines might go out of business. Individual airlines and governments should work to resolve these issues to make vouchers more attractive, and once that happens they think vouchers should be endorsed as an option. However the E.U. stands behind its requirement that cancelled flights entitle a customer to a refund.
Airlines are required to provide a refund when they cancel a flight, or make a significant change to their schedule. Federal law does not define what either of these two things mean, so airlines can create their own definition as long as it’s reasonable. United has adopted an unreasonable interpretation.
However the Department of Transportation reminds that even that new interpretation cannot be applied retroactively to tickets that were purchased before it went into effect.
Early on in the pandemic I told you to wait to cancel your travel plans. Two months ago I suggested that future plans shouldn’t cancelled right away because if the travel provider cancels on you then you’ll be entitled to a refund, while if you cancel plans when a flight is still operating all you can get is a voucher.
Many consumers were duped by airlines into taking vouchers when entitled to a refund. It’s not too late for them to get their money back.
United is effectively saying that they will not provide refunds for cancelled flights, only for significant delays, because cancelled flights do not exist. They are treating DOT rules – which specifically provide for two separate reasons for a refund – as though they only provide for one.
If an airline used to fly 8 times a day between two cities, and now flies just 3 times a day, that airline has cancelled 5 flights even though the airline can still accommodate the customer. United disagrees, but that is absurd on its face.
Airlines are cancelling flights and downsizing their operations because of the global coronavirus pandemic. When they don’t fly the flights they’ve sold, they have to refund customers’ money.
The European Union’s rule 261 applies and requires these refunds. The E.U. reiterated that last month. However European airlines have been ignoring this and not processing refunds, at least for their European customers.
Now 12 European nations are siding with airlines against their people.
You can cancel an American Airlines award ticket online – there’s a cancel link in your account’s itineraries. Cancelling, through, doesn’t put miles back into your account. To get miles redeposited you’ve had to call American – until now, under certain limited conditions.
The U.S. government is clear that airlines must refund passengers whose flights are cancelled. The European Union is clear on this too but airlines have ignored their rules. In fact, European airlines have offered refunds to Americans (or where itineraries touch the U.S.) but not for Europeans (travel that doesn’t touch the U.S.).
Canada had been clear that airlines do not have to refund passengers for cancelled flights. Fortunately they are backtracking from that position.
Te Department of Transportation reinforced that when airlines cancel flights they are required to give a customer back their money. They cannot keep money for services that aren’t rendered.
However it’s worth underscoring that refunds for future airline tickets aren’t just due to you in the event the flight you booked is cancelled. Refunds are also required in the event of a significant schedule change as well.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
