Airlines must give CASH refunds to passengers who canceled flights over coronavirus fears under Dem bill
AIRLINES would have to give cash refunds to passengers who canceled their own flights because of the coronavirus pandemic under a new Democratic bill.
introduced legislation on Wednesday that would require and third-party ticket sellers to give back billions of dollars to customers.
The — regardless of if the airline canceled the flight, or if the customer did on their own.
Airlines are already forced to offer cash refunds for flights they cancel, but air carriers aren’t required to do so for flights canceled by customers.
Since the , air travel has dropped significantly — around 95 percent — due to a fear of flying and the majority of Americans under .
Because of the drop in flight bookings, airlines have canceled thousands of flights over the past few months.
That triggers refunds to passengers who had tickets and can’t or don’t want to be rebooked on another flight.
Delta and other airlines have been spending more on refunds than they are taking in from new bookings, which is called negative net bookings.
With fewer passengers on board, airlines are operating fewer flights.
In early January, there were roughly 111,000 commercial flights a day across the world.
In March, the numbers, which included cargo flights, started quickly dropped.
All the major airlines have reached agreements with the Treasury Department for billions in grants and loans to help them cover payroll costs through September.
Among the biggest carriers, will get $5.8billion, Delta has already received half of the $5.4billion it was promised, United Airlines will get $5billion, and Southwest Airlines will receive $3.2billion.
Senators who back the legislation that was introduced on Wednesday found that major US carriers had roughly $10billion from customers canceling flights.
Airlines only offered travel vouchers and credit towards future flights, instead of offering refunds.
“Americans need cash in their pockets to pay for food, housing, and prescriptions, not temporary credits toward future travel,” Sen Ed Markey, of , said in a statement on Wednesday.
“In light of this pressing need, and an unprecedented multibillion-dollar bailout, it’s absolutely unconscionable that the airlines won’t give consumers their money back,” Markey said.
“Airlines already have a moral responsibility tickets during the coronavirus pandemic. My new legislation will give them a legal responsibility, too.”
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On Tuesday, House Speaker Nancy Pelosi
said the package would comprise of more than $3trillion in aid with nearly $1trillion set aside for states, cities, and local governments, aid to essential workers, and a new round of cash payments to individuals.
The House is expected to vote on the package as soon as Friday, but has said there is no “urgency” to act on new legislation.