Delta Airlines has agreed to pay more than $27 million in refunds to passengers whose flights were canceled during the pandemic but were denied refunds. This class-action settlement was reached between Delta Airlines and the plaintiff in May and received final approval from the U.S. District Court of the Northern District of Georgia, Atlanta, on Oct. 5. The agreement states that eligible members of the settlement class will receive a total of $27.31 million from Delta.
The settlement specifically applies to Americans who had their flights canceled by Delta during the COVID-19 period and were given credits instead of cash refunds. This decision comes after Delta initially refused to provide refunds to these passengers.
To be eligible for the settlement, individuals must have purchased tickets from Delta for flights between March 1, 2020, and April 30, 2021. They must also meet three conditions: their flight must have been canceled by Delta, they must have requested a refund and not received it, and they must have had unused or partially unused credit as of Jan. 13, 2023.
In addition to the $27.31 million in refunds, Delta will also pay 7 percent interest on this amount, as well as cover litigation costs, settlement administration costs, and attorneys’ fees, bringing the total amount paid by Delta to $29.89 million.
Out of the 74,346 eligible settlement class members, around 19 percent submitted claims to the settlement administrator by the Sept. 15 deadline.
If the settlement had not been reached, the court noted that the litigation process would have been significantly delayed, as Delta denied any wrongdoing or liability. The court stated that continuing with litigation would have required overcoming various obstacles and potentially facing a lengthy appeals process.
Any remaining funds from the settlement will be divided equally between Public Justice, a nonprofit legal advocacy organization, and United Way of Greater Atlanta, a children’s charity.
A Delta spokesperson clarified that the airline does not admit or acknowledge any failure to follow its contract of carriage or provide refunds as stated in the settlement agreement.
The class-action lawsuit leading to this settlement was filed by plaintiff Angela Dusko in April 2020. The lawsuit was a result of Delta canceling flights during the COVID-19 pandemic.
Airplanes sit on the tarmac at Charlotte Douglas International Airport with the city skyline in the background in Charlotte, N.C., on April 21, 2020. (Streeter Lecka/Getty Images)
In December 2019, Ms. Dusko purchased roundtrip tickets from Delta for $2,783.24. The trip was scheduled for March 27, 2020, with the return travel set for April 3.
However, on March 25, Delta informed Ms. Dusko that the outbound flight was canceled and attempted to rebook her tickets. The next day, she was informed that the tickets had been rebooked for March 28.
Ms. Dusko contacted Delta’s customer service and expressed her desire for a full refund instead of being rebooked. However, the customer service representative denied her request, stating that if she chose not to take the rebooked flight, she would only receive flight vouchers, not a refund.
Airlines are obligated to provide refunds to passengers if the flight cancellation is initiated by the airline. Ms. Dusko filed a lawsuit, which eventually led to the current settlement.
The lawsuit argued that Delta failed to fulfill its contractual obligations and did not cooperate with passengers regarding flight cancellations and refunds.
The lawsuit filed by Ms. Dusko was consolidated with other similar cases, including one from a teacher who paid $2,400 for nine student flights that were canceled and another from an individual who spent over $3,000 on flights to Egypt.
According to the U.S. Department of Transportation (DOT), consumers are entitled to a refund if their flight is canceled by the airline and they choose not to travel. If an airline or ticket agent refuses to provide a refund, a complaint can be filed with the DOT.
Airlines and agents are required to issue refunds within seven business days for credit card payments and within 20 days for cash or check payments.
Last year, the DOT reported that airlines paid over $600 million in refunds to passengers for canceled or significantly changed flights.
Who is eligible for the settlement and what are the conditions they must meet?
Delta Airlines Agrees to $27 Million Settlement for Refund Denials During Pandemic
Delta Airlines has reached a settlement in a class-action lawsuit and agreed to pay over $27 million in refunds to passengers whose flights were canceled during the COVID-19 pandemic but were denied refunds. The settlement, which was approved by the U.S. District Court of the Northern District of Georgia, Atlanta, on October 5, specifies that eligible members of the settlement class will receive a total of $27.31 million from Delta.
The settlement pertains specifically to American passengers who had their flights canceled by Delta during the COVID-19 period and were given credits instead of cash refunds. This decision comes after Delta initially refused to provide refunds to these passengers.
To be eligible for the settlement, individuals must have purchased tickets from Delta for flights between March 1, 2020, and April 30, 2021. They must also meet three conditions: their flight must have been canceled by Delta, they must have requested a refund and not received it, and they must have had unused or partially unused credits as of January 13, 2023.
In addition to the $27.31 million in refunds, Delta will also pay 7 percent interest on this amount, as well as cover litigation costs, settlement administration costs, and attorneys’ fees, bringing the total amount paid by Delta to $29.89 million.
Out of the 74,346 eligible settlement class members, approximately 19 percent submitted claims to the settlement administrator by the September 15 deadline.
The court noted that if the settlement had not been reached, the litigation process would have been significantly delayed, as Delta denied any wrongdoing or liability. Continuing with litigation would have required overcoming various obstacles and potentially facing a lengthy appeals process.
Any remaining funds from the settlement will be divided equally between Public Justice, a nonprofit legal advocacy organization, and United Way of Greater Atlanta, a children’s charity.
A Delta spokesperson clarified that the airline does not admit or acknowledge any failure to follow its contract of carriage or provide refunds as stated in the settlement agreement.
In a separate statement, Delta highlighted that since the beginning of 2020, the airline has refunded over 11 million tickets, amounting to $6 billion, with 20 percent of those refunds occurring in 2022.
The class-action lawsuit leading to this settlement was filed by plaintiff Angela Dusko in April 2020, as a result of Delta canceling flights during the COVID-19 pandemic.
This settlement brings some relief to affected passengers, as they can now receive the refunds they were initially denied. It serves as a reminder to airlines that they have a responsibility to provide appropriate refunds to customers when flights are canceled, especially during unprecedented events such as a global pandemic.
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