The U.S. Department of Transportation has announced enforcement actions against three airlines, citing excessive delays in refunds to passengers affected by cancellations and significant schedule changes during the pandemic.
The department has ordered Lufthansa German Airlines to pay $77.5 million in refunds and a fine of $1.1 million, KLM Royal Dutch Airlines to pay $111.3 million in refunds and a fine of $1.1 million, and South African Airways to pay $15.2 million in refunds and a fine of $300,000. The majority of these fines will be collected by the Treasury, and amounts paid to passengers beyond legal requirements will be deducted.
In May, the U.S. Department of Transportation issued rules to protect consumers from exorbitant fees, including the automatic cash refund for passengers in case of irregular operations. This is estimated to save consumers $500 million in hidden fees.
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