For some time now, the US administration has been taking a harder line with airlines - American or international - which have been dragging their feet for months, even years, in reimbursing passengers from flights cancelled during the Covid period. This move by the carriers is all the more surprising given that they have been raking in record profits since the end of the pandemic.
According to the Biden administration, the Department of Transportation (DOT) has imposed a historic level of fines to airlines, overseeing the return of nearly $4 billion in refunds owed to passengers, including more than $600 million for travellers affected by the Southwest Airlines debacle in the summer of 2022. At the same time, the DOT imposed more than $166 million in penalties on airlines for violations of consumer protection rules.
KLM, Lufthansa and SAA in the eye of the storm
And punitive action against airlines that fail to honour their commitments continues. Recently pilloried are KLM, Lufthansa and South African Airways. The three carriers still owe some 900 million in repayments and fined $2.5 million. In detail, Lufthansa owes 775 million dollars in refunds to passengers and 1.1 million dollars in fines. KLM has outstanding arrears of $113.3 million, plus a fine of $1.1 million. Finally, SAA is delaying the repayment of 15.2 million dollars and must pay a fine of 300,000 dollars.
The DOT's battle for the rights of travellers on American soil continues to gain momentum. The launch ofa schedule of passenger rights and the compensation awarded is available on the FlightRights.gov website. This site has produced results. Today, the ten major US airlines guarantee rebooking and free meals. Nine of them guarantee hotel accommodation in the event of a major delay or cancellation. The cancellation rate fell last year to 1.2%. The lowest figure for a decade.
Finally, the DOT has just announced tougher measures against surprise company charges. It requires airlines to automatically refund passengers affected by surprise taxes and to dismantle them. These rules will save consumers more than half a billion dollars each year in hidden charges. These provisions on airline refunds became law in 2024 and were promulgated on 16 May this year.
