ATLANTA — Delta will provide cash refund payments to some customers as part of a settlement in a lawsuit over canceled flights during the heights of the pandemic in 2020 and 2021.
The class action lawsuit was originally brought in April 2020 by a passenger claiming Delta had breached its contract with flyers by offering travel credits instead of direct refunds as the pandemic brought about cancellations.
"Delta has engaged in unfair and deceptive conduct through its policy to refuse refunds, limiting and forcing customers into a rebooked flight or travel voucher instead of returning their money," the original complaint claimed.
The settlement puts the lawsuit to rest and does not require Delta to admit it was wrong.
"Delta has denied, and continues to deny, each and every allegation of liability, wrongdoing, and damage," a copy of the agreement, which you can read in full at the bottom of this story, states.
But, it adds, Delta chose to settle "to avoid the substantial expense, inconvenience, burden, and disruption of continued litigation."
The company added in a statement sent to 11Alive: "Since the beginning of 2020, Delta has refunded more than 11 million bookings totaling $6 billion. When the dark days of the pandemic in 2020 brought significant impact to our business, we held true to our people-first values and provided cash refunds to those eligible when requested after a canceled flight or significant schedule change.”
The agreement, which will apply to canceled flights from March 1, 2020, to April 30, 2021, states Delta has agreed to several conditions, including "pay cash settlement payments to certain settlement class members."
How it will work
- That document appears to outline that each customer will be eligible for cash payments in the amount of any unused or partially used voucher/credit they received from Delta over a canceled flight in the March 2020-April 2021 period and still have it on their account.
- They will also be entitled to a further interest payment "equal to 7% of the original ticket amount."
- Customers will have to submit a claim form to go through the process of getting a refund.
- Those who don't have an unused or partial credit (as in, you used a voucher/credit given for a canceled flight) will not be eligible for a cash repayment on their ticket but can still get the 7% interest payment.
- The exact dollar amount Delta will be liable for is not outlined in the agreement (see pages 29-36 in the agreement below for more information).
Delta will also pay the attorneys fees for the plaintiffs in the lawsuit in the amount of $2.285 million.
An administrator will establish a website and phone number for notifying people about the conditions of the settlement.
