Cash-strapped airlines resist mounting coronavirus refund claims

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European airlines waiting in line for coronavirus bailouts want to tap another source of interest-free loans: their customers.

FILE PHOTO: An Air France Boeing 777 aircraft takes off at Paris Charles de Gaulle airport, following the coronavirus disease outbreak, in Roissy-en-France, France March 16, 2020. REUTERS/Benoit Tessier/File PhotoCash-strapped carriers are seeking to suspend European Union rules requiring refunds for cancellations and instead issue vouchers to customers left out of pocket as hundreds of thousands of flights are grounded by the pandemic.

The European Commission has rejected industry calls to relax the requirement in EU regulations to refund cancellations within a week, but airlines say they are unable to comply."Faced with a cashflow catastrophe, many airlines can only offer vouchers in lieu of immediate cash refunds for canceled flights," industry association Airlines for Europe said.

A Lufthansa spokesman said on Friday that refunds remain"possible in principle", but not"within the usual time limits". "Air France recognises clients would normally receive immediate reimbursement," its website says, blaming exceptional circumstances and"a very high number of refund requests".

 

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