US fines British Airways $1.1 million over delayed refunds

WASHINGTON (Reuters) – The U.S. Transportation Department (USDOT) said on Thursday it is fining British Airways $1.1 million for failing to provide timely refunds to passengers for flights to and from the United States during the COVID-19 pandemic.

Since March 2020, USDOT received over 1,200 complaints alleging British Airways failed to provide timely refunds. British Airways, which is owned by IAG (LON:), disputed the allegations.

USDOT said it would credit British Airways $550,000 toward the penalty because the airline in 2020 and 2021 issued more than $40 million in refunds to customers with nonrefundable tickets.