Latest data shows which airlines have been the worst — and best — about refunds
The recovery in the travel industry is going to take a while.
Until then, airlines will continue trimming their schedules and canceling flights to try to match supply with limited demand.
When an airline cancels or significantly changes your flight to, from or within the United States, you’re entitled to a refund — regardless of the reason for the cancellation.
That’s thanks to U.S. Department of Transportation (DOT) policy. When an airline violates the rule, one of the best courses of action is to file a consumer complaint with the DOT, as well as a credit card chargeback.
Each month, the DOT aggregates the complaints and publishes an Air Travel Consumer Report. July's report contains complaint data from May, so let’s take a deeper look at how the airlines behaved in the midst of the pandemic.
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Refund complaints were up, especially internationally
Relative to April, the number of complaints the DOT received rose by 10%. In and of itself, that's not necessarily surprising. May marks the early beginning of the summer season when many more leisure travelers typically take to the skies.
When you filter just for refund-related complaints, that increase jumps to 20%. If you break it down by domestic and international carriers, U.S.-based carriers accounted for just 2% of that increase. International carriers, however, drove the overall 20% increase with a 32% increase in the number of refund-related complaints.
Of course, this increase could be chalked up to the heightened demand for international flights during the summer. But when breaking it down by carrier, the data paints a bleaker picture.
United continued to skirt the rules
From the outset of the pandemic, United realized that it needed to conserve cash. To that end, it paused Polaris and Premium Plus retrofits and trimmed some of the premium-cabin amenities.
But perhaps the most egregious changes were the multitude of updates to the carrier's schedule change policy. United made it much harder to get a refund during the height of the pandemic, and only reverted back to its two-hour policy in early June.
Thus, it's no surprise to see refund-related complaints from United passengers increased 18% month-over-month. The DOT received 711 refund-related complaints per 100,000 systemwide enplanements on United.
Related: United’s back to issuing refunds for 2-hour schedule changes
Delta wasn't great about refunds either
Delta has been leading the industry with its response to the coronavirus. It even won the TPG award for the best U.S. airline of 2020 based on how it has handled the pandemic.
But refund-related complaints from Delta passengers rose by nearly 30% from April to May. Unlike United, Delta only recently updated its schedule change policy in late July. As such, the increase in complaints could be accounted for by slower processing times, or the fact that it's been very hard to get in touch with a customer service representative.
Related: The best and worst airlines of 2020
Hawaiian said goodbye to refunds
Like United, Hawaiian Airlines made some customer-unfriendly updates to its schedule change policy. The Honolulu-based carrier made it much harder for flyers to get refunds.
As such, it's not shocking to see the carrier's refund-related complaints jump from just shy of 200 in April to nearly 400 in May. I'd expect that number to increase with the June data, as more and more would-be flyers canceled their summer trips to Hawaii. The number should decrease significantly in July since Hawaiian relented on June 29 — it's now back to issuing refunds for flights changed by two or more hours.
Related: Is Hawaii open for travel?
The low-cost carriers were better than April
You might be surprised to learn that the low-cost carriers actually received fewer refund-related complaints in May compared to April. Yes, the carriers that charge you for everything from bags to seats actually improved!
In fact, both Allegiant and Spirit saw a 45% and 47% decrease in the number of refund-related complaints, respectively. The carriers went from 149 and 365 complaints in April to 82 and 193 in May, respectively.
Having covered the change and cancellation beat for TPG since the outset of the pandemic, I'm not actually shocked by this decline. Though low-cost carriers have emphasized taking credits instead of refunds, they've been great about giving your money back when you know to ask for it.
Related: How I refunded a Spirit Airlines ticket in 2 minutes via text message
Air Canada and other foreign airlines continued to defy rules
Air Canada accounted for over 17% of all refund-related complaints about international carriers. And they deserve it.
Ever since the outset of the pandemic, the carrier has defied the DOT rule on refunding canceled flights. The Montreal-based carrier has a specific call-out on its website stating:
If you purchased a non-refundable fare, please note that in accordance with government regulations, non-refundable bookings that are cancelled due to the impacts of COVID-19, government travel advisories and/or health and safety concerns are outside of Air Canada’s control and ineligible for a refund.
Even though the Canadian Transportation Agency has relaxed its refund rules, the DOT hasn't. Hopefully, the agency will stay true to its policy by sending Air Canada an enforcement notice.
Air Canada isn't the only international carrier to defy the rules. For instance, El Al Israel Airlines received 205 refund-related complaints. That's because the Israeli flag carrier closed its contact centers and stopped issuing refunds for canceled flights.
TAP Air Portugal also continued to receive a high number of refund-related complaints in May. That's likely due to the fact that it continued flying many of its U.S. routes in May, meaning that you weren’t eligible for a refund (since the flight actually operated).
Bottom line
By now you should know that you’re entitled to a refund when your flight is canceled by the airline.
If an airline denies your eligible refund request, one of the next best courses of action is filing a DOT complaint. Each month, those complaints are tallied and reported by the agency.
In May, the number of refund-related complaints rose compared to April. United continued to skirt the rules, as did Hawaiian.
The low-cost carriers actually improved, while many international carriers like Air Canada continued being stingy.
Time will tell how the airlines performed in June, but hopefully, we’ll begin seeing fewer refund-related complaints as travel slowly begins to restart — and airlines scale back their customer-unfriendly policies.
For more about refunds, see:
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.