Three airlines to pay $900 million in refunds to passengers
The Transportation Department ordered Lufthansa, South African Airways and KLM Royal Dutch Airways to pay the refunds. The U.S. Department of Transportation has announced that three airlines, Lufthansa, South African Airways and KLM Royal Dutch Airways, will pay $900 million in refunds for cancelled or significantly changed flights due to the COVID-19 pandemic. The majority of the $2.5 million in civil penalties against the three airlines will be paid to the United States Treasury. The refunds will be issued to passengers. This comes after the department of Transportation announced new rules for the airline industry that require automatic cash refunds for passengers on significantly delayed flights.
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A handful of airlines will pay $900 million in refunds to passengers for cancelled or significantly changed flights due to the COVID-19 pandemic. The U.S. Department of Transportation announced Monday that Lufthansa, South African Airways and KLM Royal Dutch Airways were required to provide refunds in a timely manner.
“When a flight is cancelled or significantly changed, you shouldn’t have to fight with the airline to get your money back — and we’re holding airlines accountable when they fail to give passengers the refunds that they’re owed,” Transportation Secretary Pete Buttigieg said in a statement.
While the majority of the $2.5 million in civil penalties assessed against the three airlines will be paid to the U.S. Treasury, the refunds will be issued to passengers. Lufthansa is required to pay $775 million in refunds, KLM is required to refund $113.3 million and South African Airways will pay $15.2 million.
The refund announcement comes about a month after the Department of Transportation announced sweeping new rules for the airline industry that require them to pay automatic cash refunds to passengers on significantly delayed flights.
Topik: Aviation, Airlines