Airlines broke law in 'forcing customers to accept vouchers' over refunds

The report found that 7,000 air routes were closed in the European airport network, and these cancellations 'affected tens of millions of passengers in the EU between March 2020 and March 2021'. 

Millions of air passengers did not get refunds for flights cancelled during the pandemic, despite “unprecedented levels of state aid” being given to the industry, the European Court of Auditors has found.

A report published today found air passengers’ rights "have not been safeguarded" in the EU during the Covid-19 pandemic.

For much of the early days of the pandemic and most of last summer, the cancellation of holidays and flights and the battle for refunds featured highly on the news agenda. Customers were frustrated at being left out of pocket, while airlines scrambled to stay afloat amid an uncertain future.

The report found that 7,000 air routes were closed in the European airport network, and these cancellations “affected tens of millions of passengers in the EU between March 2020 and March 2021". 

The European Court of Auditors (ECA) said airlines are legally required to give passengers their money back if they cancel flights.

“But many airlines forced their customers to accept vouchers instead, a practice which is unlawful,” it said in a statement.

The ECA said European law in these situations gives air passengers the right to have their cancelled flight tickets reimbursed or their cancelled trips rerouted.

“Airlines and package-tour operators received billions of euros of state aid, aid which was provided without being conditional on passengers being reimbursed.”

The ECA acknowledged that this aid was in reaction to “sudden and serious liquidity problems for airlines and package-tour operators". 

It said the aid allowed the airlines to continue operations even when people were not flying, and said this meant the companies were saved from potential bankruptcy.

Annemie Turtelboom, a member of the European Court of Auditors responsible for the report, said: “Among its many consequences, the pandemic has had a harmful effect on EU air passenger rights.”

Ae added: “While every effort has been made to support airlines and package-tour operators, far too little has been done to secure the rights of millions of people in the EU.”

The EU Court of Auditors is the external auditor for the EU.