The US Transportation Department (USDOT) has announced a fine of $1.1 million against British Airways for its failure to provide timely refunds to passengers for

flights to and from the United States during the COVID-19 pandemic. The USDOT received over 1,200 complaints since March 2020, alleging that British Airways did not fulfill refund requests promptly. While the airline, which is owned by IAG, denied the allegations, the USDOT has imposed the penalty as a deterrent against similar unlawful practices by British Airways and other carriers.

To partially offset the fine, the USDOT will credit British Airways $550,000 because the airline had issued over $40 million in refunds to customers with nonrefundable tickets between 2020 and 2021. British Airways stated that it had acted lawfully throughout the process and had provided customers with options to rebook or claim refunds when flights were canceled.

The USDOT highlighted that customers faced difficulties in reaching customer service agents due to British Airways' inadequate maintenance of customer service phone lines. The airline acknowledged longer wait times during the height of the pandemic when numerous flights were canceled, and some call centers were closed due to government restrictions.

The USDOT has been actively penalizing airlines for their failure to provide timely refunds. Last month, LATAM Airlines Group was fined $1 million for delayed refunds. The USDOT has received over 750 complaints since March 2020, alleging LATAM's failure to provide timely refunds for US flights.

In an effort to deter future misconduct, the USDOT has expressed its intention to seek higher penalties for airlines that violate consumer protection rules. This approach aims to ensure that penalties are not simply viewed as a cost of doing business. Photo by Steve Lynes from Sandshurst, United Kingdom, Wikimedia commons.