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Canadians who purchased airline tickets are saying that they are not getting refunds they believe they deserve after their flights were cancelled due to the COVID-19 pandemic.
Instead, many consumers are receiving flight credits that require them to book tickets with the same airline within a limited amount of time.
The Canadian Transportation Agency issued a statement on its website stating that airlines are not obligated to refund passengers for flights that are cancelled for reasons outside of an airline’s control, including coronavirus-related cancellations.
According to the CTA, the rules currently require airlines to make sure passengers can complete their itineraries.
“Some airlines’ tariffs provide for refunds in certain cases, but may have clauses that airlines believe relieve them of obligations in force majeure situations,” the CTA’s statement reads.
Consumer advocates argue that the CTA’s statement does not have the same authority as an official ruling, which would be signed by at least one of the members of the tribunal.
“The Canadian Transportation Agency is the administrative body that is first in line to interpret the regulations,” said Christian Nielsen, the chief legal officer of a Berlin-based passenger-rights company called AirHelp. “But they can only do that through decisions, and this is not a decision.”
Regulations that were implemented last year require airlines to “refund the unused portion of the ticket” in the event of a cancellation, prolonged delay or bumped flight that is within the airline’s control, if alternative travel arrangements do not meet the traveler’s needs.
For flights that are cancelled for reasons that are not within the carrier’s control, the airline is simply required to arrange alternative travel arrangements.
Nielsen points out that these regulations did not consider situations like those caused by the COVID-19 pandemic which prevent the airlines from rerouting passengers.
“It doesn’t say anything about a situation where they’re not able to reroute,” Nielsen told GlobalNews.ca. “And that’s why the CTA has to come in and provide guidance, because it’s actually not accounted for in the regulations.”
Earlier court decisions suggest that airlines may actually be on the hook to provide refunds for unused portions of travelers’ tickets, according to GlobalNews.ca.
A 2014 ruling determines that passengers have the right “to be refunded for the unused portions of their tickets if the carrier is unable to provide transportation on its services or on the services of other carrier(s) within a reasonable period of time.”
In 2013, a court held that it was “unreasonable” for Porter Airlines “to refuse to refund the fare paid by a passenger because of its cancellation of a flight, even if the cause is an event beyond Porter’s control.”
According to the statement posted on the CTA website, it is aiming to balance passenger protection against “airlines’ operational realities” due to the effects of the coronavirus. Faced with substantially less demand for flights, many airlines are grounding flights and laying off thousands of workers.
“On the one hand, passengers who have no prospect of completing their planned itineraries with an airline’s assistance should not simply be out-of-pocket for the cost of cancelled flights,” the statement says. “On the other hand, airlines facing huge drops in passenger volumes and revenues should not be expected to take steps that could threaten their economic viability.”
The CTA says it is reasonable under the circumstances to provide travelers with credits or vouchers for future travel as long as they do not expire within a short time frame.
Travelers have shelled out substantial amounts of money to pay for air travel for trips that they may not be able to take in the future. Even if they wish to rebook a trip at some later date, they are concerned that the airline might not withstand the losses caused by the coronavirus.
“We are afraid that maybe this airline or agency will go bankrupt and we’ll never see our money back,” Maria Alongi told CTVNews.ca. She says she spent nearly $8,000 for a trip scheduled for July. She says she’s received partial refunds for the cruise and hotels that she booked, but hasn’t been able to get a refund for her air travel.
“We feel that we’re cheated by the system,” she said.
As the frustration from passengers whose travel plans have been cancelled due to COVID-19 and the uncertainty of the future of air travel grows, legal experts are considering the possibility that a class action lawsuit may be necessary to help consumers get refunds for the flights they are unable to take.
“I’ve heard a lot about force majeure, act of God or fortuitous event,” class action lawyer Jeff Orenstein said. “The reason you would use these words is so that consumers, for example, would not be trying to force airlines to fly when they’re not able to. I believe the law if fairly clear the airlines must offer restitution.”
Were you offered a credit or voucher for an airline ticket that you can no longer use because of the COVID-19 pandemic? Tell us your story in the comment section below!
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9 thoughts onAirline Ticket Cancellations Due to the COVID-19 Pandemic May Lead to Class Action Lawsuit
Party of three also effected by this ridiculous voucher solution offered by Canadian Airlines. A situation being out of control of the customer who paid in full in advance for a advertised service, should not result in a passengers hard earned cash being held without the option on a refund. Being forced, by means of a voucher, to book an alternative unnecessary flight is one thing, but to monopolize a consumers choice of sourcing competitive pricing, flight times, flight dates, and flight destinations in the future is unprofessional, inappropriate, and seen as manipulative by perceived reputable airlines. These airlines futures depend on these same paying customers to support them and their success in the future. With the help of social media, surveys and reviews, these days word travels fast and further reflecting the bottom line.
We booked a direct flight from Brisbane Australia to Vancouver than on toToronto. This was booked the 16 feb 2020 for travel 7 September and we went through flight centre. On the 15th April we went to Fc to see what was happening got told Air Canada had done a schedule Change to our booking we were now leaving from Sydney which is a 10 hour drive. Also going from Sydney is a cheaper ticket we told both Air Canada and flight centre this wasn’t what we had paid for. We asked air Canada for a refund they stated on credit vouchers. However this is not what we paid for to be giving a timeframe when to take a holiday. We want a refund The money would help us. Consumers have rights to a refund.
Porter cancelled our flights from Windsor to Montreal with return. They sent an email with a voucher. I asked the call centre to put me through to the supervisor. I informed them that they may be retroactively changing their policies, but the law requires that they provide the refund. The supervisor refused to allow me to speak to the manager. His name is “Chris,” but no last name, employee number, nor means of contact would be provided. According to the supervisor, “It is not the manager’s job to speak to (me).” They have no intension of helping customers.
I just received an email from Expedia that tells me that they are “not refunding me” but instead would allow “me” a credit to use at a later date, but that I would have to book through Expedia and use an Air Canada flight. I have not seen any voucher and all I have is this email from Expedia.
Should anyone start a class action I would be willing to participate as we don’t know when we will be able to travel “safely” again (at least any time soon).
I think this is a disgrace, and in this instance the Transportation Board should get involved, as we (the public) opted to book through a travel agent and have paid our hard earned money to them (in advance) only to have our trip cancelled.. Now we are stuck, and cannot get refunded for anything. They get to keep “our” money for a trip, a contract, that they could not fulfill. There are fuel surcharges, airport fees, etc. built into this contract and they are not using this money to pay for fuel, airport charges or landing rights, so why should they be allowed to keep our money?
I look at it as someone that you hire to do work for you, and they ask for an amount in advance. If they cannot come, or fulfill the contract, they would have to reimburse you! Why not in this instance?
I guess I would understand if they (airlines/travel agents) said that we could take the trip, at a later date, for no extra charges, as long as it was to the same destination, however we all know that this will probably not be the case…
I ALSO HAVE THE SAME PROBLEM, I HAD EMAIL FOR REFUNDS DUE TO COVIC-19 NO REPLY TILL LAST 2 WEEKS FLIGHT DEPARTED, THE FLIGHTHUB SENT ME THE EMAIL WITH THE CREDIT NOTE WITH $75 FEES TAKE AWAY. I SPENT ALMOST $4500.00 FOR 3 ADULTS AND 1 KID
THE TICKETS HAD BOOK LADT OCTOBER, AND THE TICKETS ONLY GOOD FOR ME TO BOOK TILL SAME TIME AS OCTOBER
I GOT VERY FRUSTRATING, NO ONE TAKES YOUR CALL OR NETHER REPLY MY EMAIL
I REALLY WANT TO TAKE LAWSUIT ACTION , BUT HAVE NO IDEA WHICH LAWYER I SHOULD GET
I TRY NOT TO TAKE THE WRONG GABBAGE LAWYER AS I USED TO
We were offered a voucher for trip cancelled on March 23rd, considering the current employment situation my family is not working and could use the money we paid for this trip not a a voucher
We were offered a credit voucher from sunwing airlines and they told me even with cancellation insurance we wouldn’t get a refund from any airline due to covid 19.
Their terms and conditions include refund. They say they are “aligning their policies to other airlines”. That is illegal. Passenger rights are minimum standards. Terms and conditions as long as they meet or exceed them is a contract.
Imagine if your credit card, while meeting laws, suddenly changed to be like another banks without informing you, or just for a short period of time, due to financial hardship.
In Australia we can’t even use charge backs the travel industry put pressure on the banks. So we can’t go down that way. Keep fighting our only hope is if the Canadians can get the credit voucher removed for refunds. Is there anyone in Canada that I should be emailing.