Ryanair investigated over Covid refunds

The British Competition and Markets Authority (CMA) said Ryanair should have issued refunds for the cancelled trips when planes were grounded due to the pandemic.

During the pandemic Ryanair provided the option to rebook, while BA offered vouchers or rebookings, the CMA added.

Ryanair and British Airways are under investigation in the UK over whether they breached consumer laws by not offering refunds to customers for cancelled flights due to the Covid pandemic.

The British Competition and Markets Authority (CMA) said the companies should have issued refunds for the cancelled trips when planes were grounded due to the pandemic.

Investigators will be writing to both airlines and will also look at whether refunds should have been given where flights took place but non-essential travel was banned due to lockdown restrictions.

During the pandemic Ryanair provided the option to rebook, while BA offered vouchers or rebookings, the CMA added.

Legally, customers are entitled to a cash refund within 14 days.

The UK watchdog said: “The CMA is concerned that, by failing to offer people their money back, both firms may have breached consumer law and left people unfairly out of pocket.

“It is now seeking to resolve these concerns with the companies, which may include seeking refunds, or other redress, for affected customers.” 

CMA chief executive Andrea Coscelli added: “While we understand that airlines have had a tough time during the pandemic, people should not be left unfairly out of pocket for following the law.

“Customers booked these flights in good faith and were legally unable to take them due to circumstances entirely outside of their control. We believe these people should have been offered their money back.” 

The agency added that it should not be assumed either airline has broken the law.

Irish context

Contacted for comment on whether a similar investigation to the CMA's may be undertaken in Ireland, a spokesperson for the Competition and Consumer Protection Commission (CCPS) told the Irish Examiner that it was their understanding that the CMA case related specifically to UK legislation. 

"In Ireland, where a flight has not been cancelled but individuals do not take the flight due to travel restrictions, whether they have a right to a refund generally falls under Irish contract law and common law rather than consumer protection law," the spokesperson said.  

Though it may not have a direct impact on the CCPC's work, the Commission said it would be monitoring the CMA’s UK investigation.