British Airways was fined $1.1m by the US government. The US government has fined British Airways over claims that it did not provide refunds for flights that were cancelled due to the pandemic.
The airline was accused of failing to give “timely refunds to passengers” for cancelled or rescheduled flights into and out of the US, according to the US Department of Transportation.
More than 1,200 complaints were lodged against the airline, according to the statement.
As British Airways was fined $1.1m by the US government, BA denied the allegations and insisted that it “acted lawfully at all times.”
The transport department claims that between March 2020 and November 2020, BA’s website advised customers to call the company to inquire about refund options, including for flights the company had cancelled or significantly changed.
However, for several months during this time, customers calling the carrier were unable to reach customer service representatives because BA failed to keep its customer service phone lines functioning properly, the report claimed.
The department stated that during this time, “there was also no way to submit a refund request through the carrier’s website.”
Incorrect information on BA’s website caused customers to unintentionally request travel vouchers rather than refunds from March to November 2020, the report continued.
It claimed that in addition to the 1,200 complaints the department had received, BA had also received thousands of additional complaints and refund requests from customers.
According to the department, the mistakes had “significantly complicated and delayed the receipt of required refunds by thousands of consumers.”
It added that the fine established a “strong deterrent to future similar unlawful practices”.
BA will be credited $550,000 towards the penalty because it paid more than $40m in refunds to customers with non-refundable tickets in 2020 and 2021.
“During this period, we acted lawfully at all times and offered customers the flexibility of rebooking travel on different dates or claiming a refund if their flights were cancelled.
“To date, we have issued more than five million refunds since the start of the pandemic.”
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British Airways is the flag carrier of the United Kingdom. It is headquartered in London, England, near its main hub at Heathrow Airport. The airline is the second largest UK-based carrier, based on fleet size and passengers carried, behind easyJet.
