US airlines sitting on US$10 bil in travel vouchers, lawmakers say

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US airlines sitting on US$10 bil in travel vouchers, lawmakers say
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The vouchers require passengers to take burdensome steps to request refunds. FMTNews USAirline Aviation

WASHINGTON: US airlines are estimated to be sitting on more than $10 billion in travel vouchers that should have been cash refunds from cancelled flights, a group of senators released on Friday.

The Democratic senators had asked Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines, Sun Country Airlines, and United Airlines to each provide details on their refund policies during the pandemic.

“Assuming a similar trend throughout the industry over the last month, this figure could mean that the airlines are sitting on more than US$10 billion in customer cash,” the lawmakers said, while inviting airlines to provide more information if they dispute the figure. Among replies by larger carriers, Delta said it had processed over 1 million refunds totalling more than US$500 million in March, for passengers that had requested a cash refund for flights that Delta cancelled or changed.

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