CAA may take action over £7 billion unpaid refunds

The Civil Aviation Authority (CAA) is considering legal action against airlines dragging their heels over issuing refunds for flights cancelled due to the coronavirus pandemic.

Raw Deal last week highlighted the plight of customers struggling to get their money back from travel firms for cancelled package holidays as a result of the crisis.

If a flight is cancelled, by law the operators of airlines must refund customers within seven days. Instead, they have been pushing people to take vouchers that can be used when the lockdown measures are lifted.

The aviation watchdog says that it may have to act as some airlines are “systematically” denying customers refunds.

Last month, thousands of complaints were made to consumer groups by customers trying to get refunds for cancelled flights. It is believed that around £7 billion of travellers’ money has been affected.

“Consumers are entitled to receive a refund for their cancelled flights, despite the challenges the industry is currently facing,” said the CAA.

“It is important that consumers are given a clear option to request a cash refund without unnecessary barriers.”

Michael O’Leary, chief executive of Ryanair, has said it could take around six months for passengers to receive refunds. He has claimed everyone who has asked for a cash refund, instead of a future travel voucher, would receive one. But he said a condition could be waiting a considerable number of months to get it.

“It is very important that all customers understand there has been no change to your refund entitlement,” he said. “If you want a cash refund you will get a cash refund.”