Airlines owe travel agents up to €30 million in flight refunds

Travel agents have spent much of the last six months trying to get refunds from airlines

Pat Dawson, CEO of the Irish Travel Agents Association said travel agents are "burning cash." Picture: Conor Healy Photography

Airlines owe travel agents, tour operators and consumers between €25m to €30m in flight refunds, the Oireachtas Transport Committee heard today.

Irish Travel Agents Association (ITAA) CEO Pat Dawson told the Committee that travel agents have just been "burning cash" over the last six months, adding that most of their time has been spent "trying to get refunds from airlines.” 

Mr Dawson said it’s taking four to five months to obtain refunds from airlines with some flights from March still not refunded.

Mr Dawson also said many airlines flew flights this summer because it was “cheaper to fly than cancel the flights.” 

He called on the government to ensure customers are refunded for flights that go-ahead when they are being asked to avoid non-essential travel.

Paul Hackett, Board Member of the Irish Travel Agents Association said for the 3,500 people employed in the industry, trading is down 90 - 95% since March.

He believes it will continue at this level for the foreseeable future “because of the messaging around non-essential travel.”

Sinn Féin’s spokesperson on Transport, Darren O’Rourke TD has called on Minister Eamon Ryan to address the "plight of the travel agency industry." who have lost 95% of their business this year but have not received any additional assistance from the government.

Darren O'Rourke said some travel agents have had to re-mortgage their homes due to the impact Covid-19 has had on their business

"They cannot close their doors when business is down as they need to be there to refund customers, but all their overhead costs remain," he said. 

Mr O'Rourke said he has been in contact with some travel agents who have had to re-mortgage their family homes to try and keep their business from collapsing.

TD O'Rourke said travel agents cannot be expected to refund money to customers if the airlines do not refund it to them, adding that many customers are dealing with airlines directly, so the outstanding flight refunds owed to customers is likely far in excess of €30 million.