Calls for automatic airline refunds grow as daily flight cancellations continue

In April, the Transport Select Committee backed a system of automatic refunds for airlines that cancel flights

easyJet and Tui have both cancelled flights after passengers had boarded the aircraft (PA)

Airlines could be forced to issue automatic refunds to customers whose flights they cancel at short notice, under plans being discussed by UK ministers.

During weeks of last-minute cancellations and daily schedule changes from the likes of easyJet, British Airways and Tui, calls for an automatic refund system have intensified as thousands of holidaymakers clamour to get their money back.

At present, travellers whose flights have been cancelled must apply manually for a refund or choose to accept a rescheduled departure from the airline.

With continuing daily flight cancellations and fear of further disruption into summer, some government ministers are calling for refunds to be simplified and made automatic.

In an April report, the government’s Transport Select Committee called for tougher action against airlines that are slow in paying refunds – and better protection for passengers when carriers go bust.

As a longer-term measure, the Reform For Take Off report also backed a system of automatic refunds for airlines that cancel flights.

The transport minister Grant Shapps yesterday met with airline leaders to discuss the current level of travel disruption, in an attempt to find solutions.

The Department for Transport and the aviation industry have also set up a group to discuss mitigating travel issues ahead of the summer holidays.

Simon Calder, travel correspondent of The Independent, said: “Airlines have consistently batted this idea away. They say automatic refunds are very complicated – partly because many passengers book indirectly, and also because of concern about fraud.

“Yet rail firms such as LNER have already shown how passengers who buy direct from the travel company can get automatic or one-click refunds when their journeys are disrupted.

“Equally important, though, is proper enforcement of the existing rules about flight cancellations. Time and again, passengers are not given a full picture of their options and entitlements.”

On Wednesday, Mr Shapps accused travel companies of overselling flights and holidays when they do not have the capacity to deliver them.

“Despite government warnings, operators seriously oversold flights and holidays relative to their capacity to deliver. This must not happen again and all efforts should be directed at there being no repeat of this over the summer - the first post-Covid summer season,” he told the BBC.

In turn, industry leaders and union bosses have pointed at the government’s sudden removal of Covid-19 restrictions and lack of support during the pandemic for the present travel chaos.

On Wednesday, Conservative MP Huw Merriman - chair of the Transport Select Committee - said the government had “effectively told [airlines] to fly” by removing restrictions.

He told Sky News: ‘I think it’s disappointing for the government to appear to blame the industry. This is an industry that’s lost billions.

“They can’t just flick the switch on in anticipation because there have been so many changes to the rules.”