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This bill — the Cash Refunds for Coronavirus Cancellations Act — would require major airlines (defined as airlines with at least $1.5 billion in annual revenue) and third-party ticket sellers to offer full cash refunds for all canceled tickets during the coronavirus pandemic, no matter whether the airline canceled the overall flight or the passenger canceled their individual ticket. It would permit airlines and third-party ticket sellers to offer travel vouchers as an alternative to cash refunds as long as the vouchers are valid indefinitely and the offer included clear and conspicuous notice of the flyer’s right to a cash refund.

The right to a cash refund would be retroactive, applying to any flight on or after March 1, 2020. This would allow passengers who previously received travel vouchers that they haven’t yet used to now ask for cash refunds instead.

Finally, this bill would mandate that cash refunds be available until 180 days after the end of the nationwide COVID-19 emergency declarations. This would give consumers six extra months of flexibility and peace of mind so that they don’t have to travel until they truly feel safe flying again.

Airlines would be allowed to pay for refunds using any of the financial assistance they received from federal COVID-19 relief funds, with the exception of funds that were designated for airline employees. This includes funds from the CARES Act, which set aside $50 billion for U.S. airlines.

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Should Airlines be Required to Offer Cash Refunds to Customers for Flights Canceled Due to COVID-19?