COVID-19: lockdown flight refunds

The CMA investigated whether airlines had breached consumers’ legal rights by failing to offer cash refunds for flights they could not lawfully take.

From:
Competition and Markets Authority
Published
16 December 2020
Last updated
7 October 2021 — See all updates
Case type:
Consumer enforcement
Case state:
Closed
Market sector:
Recreation and leisure and Transport
Outcome:
Consumer enforcement - no formal action
Opened:
16 December 2020
Closed:
7 October 2021

Case closure

7 October 2021: The CMA has concluded that a lack of clarity in the law makes it insufficiently certain that it would be able to secure refunds for customers of British Airways and Ryanair who were prevented from flying by coronavirus (COVID-19) travel restrictions.

In June 2021, the CMA launched a probe into the airlines over concerns they may have broken the law by failing to offer refunds for flights customers could not legally take during periods of lockdown. Instead, British Airways offered customers vouchers or rebooking and Ryanair provided the option to rebook.

After a thorough examination of relevant law, and the evidence it had gathered during its investigation, the CMA has concluded that the law does not provide passengers with a sufficiently clear right to a refund in these unusual circumstances to justify continuing with the case.

Consumer protection law sets out that passengers are entitled to refunds when an airline cancels a flight, because the firm cannot provide its contracted services. However, it does not clearly cover whether people should be refunded when their flight goes ahead but they are legally prohibited from taking it.

Following its review of the law and evidence, alongside expert advice, the CMA concluded that prolonging this investigation could not be justified given the length of time it would take to reach an outcome in the courts and the uncertain outcome. Considering this, and given the CMA can only enforce the law as it stands, it has decided to close the investigation.

Case opening

9 June 2021: The CMA is investigating whether British Airways and Ryanair have broken consumer law by failing to offer refunds for flights customers could not legally take due to lockdown laws in the UK.

The CMA has opened enforcement cases into both airlines and written to them detailing its concerns. It is now seeking to resolve these concerns with the companies.

The CMA will not provide any additional public information about the cases and it should not be assumed at this time that either airline has broken the law. Ultimately, only a court can decide whether a breach has occurred.

Any updates will be published on this page.

Investigation launched

The Competition and Markets Authority (CMA) has opened an investigation into the airlines sector following reports airlines may have breached consumers’ legal rights by failing to offer cash refunds for flights they could not legally take.

The investigation will consider situations where airlines continued to operate flights despite people being unable lawfully to travel for non-essential purposes in the UK or abroad, for example during the second lockdown in England in November.

The CMA will be writing to airlines requesting information to understand more about their approach to refunds for consumers prevented from flying due to lockdown.

Updates to this page

Published 16 December 2020
Last updated 7 October 2021 + show all updates

  1. Case closure published.

  2. New case opening.

  3. First published.

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