Regulations require airlines to fully refund customers when the airline cancels flights. But now dealing with thousands of cancellations — the industry wants the government to change that policy.
The head of the International Air Transport Association , the group representing air carriers around the world, says airlines are losing billions and burning through their cash reserves.
"The key element for us is to avoid running out of cash so refunding the canceled ticket for us is almost unbearable financially speaking," IATA Director General Alexandre De Juniac said in an online news conference on Tuesday. The industry lobbying group is asking governments to relax their refund policies and allow airlines to offer travel credits and vouchers instead. But amid a rising number of consumer complaints, the U.S.
It's important to note, though, that airlines are not obligated to provide refunds to people who cancel their own travel plans, which is a common situation many would be travelers find themselves in. Amid stay at home orders and travel warnings and restrictions, families who have canceled spring break trips and vacationsthe airline cancels their flight find themselves forced to accept travel credits or vouchers that may expire before travel restrictions are lifted.
But at least two airlines, Delta and United, have extended the time for customers to use travel vouchers through May of 2022, instead of the standard one year from the date of purchase.
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