The U.S. Department of Transportation (DOT) announced enforcement actions against Lufthansa, South African Airways, and KLM Royal Dutch Airways for significant delays in issuing over $900 million in refunds to passengers affected by flight cancellations or significant changes due to the COVID-19 pandemic. Under the consent orders, these airlines are mandated to provide timely refunds and pay civil penalties to the U.S. Treasury.
"When a flight is cancelled or significantly changed, you shouldn’t have to fight with the airline to get their money back—and we’re holding airlines accountable when they fail to give passengers the refunds that they’re owed," said U.S. Transportation Secretary Pete Buttigieg. "Today’s actions further demonstrate that passenger rights remain a top priority for the Biden-Harris Administration—and we are using all of our tools to improve air travel for everyone."
In addition to over $900 million in refunds already paid back by these airlines, DOT announced it is assessing a total of $2.5 million in civil penalties for extreme delays in providing refunds. The majority of these fines will be directed to the U.S. Treasury, with some credited based on payments made beyond legal requirements.
The specific refunds and penalties assessed are as follows:
- Lufthansa: $775 million in required refunds and a $1.1 million penalty.
- KLM: $113.3 million in required refunds and a $1.1 million penalty.
- South African Airways: $15.2 million in required refunds and a $300,000 penalty.
Last month, DOT introduced two final rules requiring airlines to provide automatic cash refunds when owed and protect consumers from unexpected fees. These rules aim to enhance consumer protections, streamline refund processes, and save consumers over half a billion dollars annually from hidden fees.
Under the Biden-Harris Administration, DOT has advanced substantial expansions of airline passenger rights, imposed record fines against non-compliant airlines, and secured unprecedented returns of funds owed to passengers.
In 2022 alone, under Secretary Buttigieg's guidance, DOT launched an Airline Customer Service Dashboard known as FlightRights.gov. This platform helps passengers understand their entitlements during delays or cancellations within airline control and sets enforceable standards for airlines' commitments such as free rebooking, meals during delays, and hotel accommodations.
Since President Biden took office, DOT has overseen nearly $4 billion in returned funds owed to passengers—including more than $600 million related to Southwest Airlines’ holiday disruptions in 2022—and issued over $166 million in penalties for consumer protection violations.
Additionally, DOT has partnered with state attorneys general on fast-tracking consumer complaint reviews and ensuring accountability from airlines while maintaining historically low flight cancellation rates despite high travel volumes.
DOT is also conducting its first industry-wide review of airline privacy practices and loyalty programs while pursuing rulemakings aimed at banning family seating fees without extra charges for parents sitting with children; mandating compensation for travelers during airline-caused delays or cancellations; expanding wheelchair user rights; among other initiatives.
All consent orders issued today can be accessed at www.regulations.gov under docket number DOT-OST-2024-0001. Further information about airline passenger rights is available at https://www.transportation.gov/airconsumer where consumers can also file complaints against airlines.
