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        <title><![CDATA[Airlines withholding $10B in cash from customers, lawmakers say]]></title>
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            <media:title type="html">Airlines withholding $10B in cash from customers, lawmakers say</media:title>
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        <content:encoded><![CDATA[<p>US airlines are estimated to be sitting on more than $10 billion in travel vouchers that should have been cash refunds from canceled flights, a group of senators released on Friday.</p><p>Many US airlines are canceling 60 percent to 80 percent of their flights, and under federal law passengers on those flights <strong>are entitled to full refunds</strong>, Senators Ed Markey, Elizabeth Warren and Richard Blumenthal said in a statement.</p><p>“However, many airlines have been obfuscating this right by offering travel vouchers as the default option, requiring passengers to take burdensome steps to request refunds instead,” they said.</p><p>The Democratic senators had asked Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines, Sun Country Airlines, <strong>and United Airlines</strong> to each provide details on their refund policies during the pandemic.</p><p>In the airline replies, which were reviewed by Reuters, most did not share the total value of the travel vouchers and credits they have issued during the pandemic.</p><p>But JetBlue, which has 5.5 percent of the domestic market share, said it issued over $20 million per day of travel credits to consumers in the first few weeks of March.</p><p>“Assuming a similar trend throughout the industry over the last month, this figure could mean that the airlines are sitting on more than $10 billion in customer cash,” the lawmakers said, while inviting airlines to provide more information if they dispute the figure.</p><p>According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the US Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets.</p><p>“None of the biggest carriers with the most revenue, including United, American, Delta, and Southwest, offer similar refunds,” it said.</p><p>In their replies the airlines generally said their policies are consistent with DOT guidelines.</p><p>Sun Country, a Minnesota-based ultra low cost carrier, said refunding all of its non-refundable tickets outside of DOT guidelines “would put the company’s future at risk.”</p><p>Among replies by larger carriers, Delta said it had processed over 1 million refunds totaling more than $500 million in March, for passengers that had requested a cash refund for flights that Delta canceled or changed.</p><p>American Airlines said in its reply that over 90 percent of the customers who were offered a refund for flights the company itself canceled chose that option over a travel voucher.</p><p>If passengers do not specifically request a refund, they are issued a travel voucher. While many airlines have made the vouchers valid for up to two years, some airlines’ vouchers expire within one year.</p><p>US airlines are set to soon receive <strong>$25 billion in government payroll aid</strong>, much of it in the form of free cash, and can also apply for another $25 billion in government loans to help them weather the coronavirus downturn.</p><p>Two weeks ago, the Transportation Department issued a notice to airlines reminding them <strong>they are obligated to refund tickets</strong> when they cancel a flight or make a significant flight schedule change that passengers opt not to accept, but did not take any immediate action against airlines.</p><p>The department said given the massive crisis it “will exercise its prosecutorial discretion and provide carriers an opportunity to become compliant before taking further action.”</p>]]></content:encoded>
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