The U.S. Department of Transportation has fined Air Canada $25.6 million U.S. for failing to provide timely refunds to American customers whose flights were canceled or delayed during the pandemic.
The department’s Office of Aviation Consumer Protection said that, since March 1, 2020, it had received more than 6,000 complaints from consumers alleging that Air Canada denied them refunds they were owed.
In the complaint filed in American court, the U.S. Department of Transportation said it was seeking the civil penalty "for Air Canada’s extreme delays in providing the required refunds."
The agency added that the large penalty is "intended to deter Air Canada and other carriers from committing similar violations in the future."
In the U.S., airlines have seven days to refund passengers from the date of the request for flights purchased with a credit card, and 20 days for flights purchased with cash.
Air Canada said in a written statement that it believes the U.S. Transportation Department is trying to enforce emergency guidelines that don’t have the force of law and plans to challenge the fine in court.
The airline also said that it has refunded more than $1.2 billion U.S. to eligible customers who had refundable fares for travel that was affected by the COVID-19 pandemic.
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