The Civil Aviation Authority (CAA) has issued a warning to airlines, reminding them of their legal obligation to provide refunds to passengers whose flights were cancelled due to the coronavirus pandemic. Under UK law, airlines must refund customers within seven days of a cancellation.
However, with fewer than 10% of UK flights currently operating, airlines are struggling to process the high volume of refund requests. The CAA stated it is reviewing how airlines handle refunds and may take action to protect consumer rights.
Consumer group Which? reported thousands of complaints from passengers unable to secure cash refunds, with many being offered vouchers instead. The travel industry estimates that £7 billion of travellers' money is affected.
The CAA emphasised that consumers are entitled to cash refunds despite the challenges faced by airlines. It supports vouchers and rebooking options but insists that passengers must have a clear choice to request a refund without unnecessary barriers.
Ryanair CEO Michael O'Leary acknowledged that refunds could take up to six months due to a backlog of 25 million requests and reduced staff. Meanwhile, British Airways, Virgin Atlantic, and Ryanair have announced thousands of job cuts as demand for air travel plummets.
Airlines have also expressed concerns over proposed 14-day quarantine measures for international arrivals, which they fear will further damage the industry. The Airport Operators Association urged that any quarantine be applied selectively and with economic mitigation.
