CAA chief Richard Moriarty has revealed 95% of refunds for flights cancelled owing to the Covid crisis have now been paid to consumers.
Moriarty updated the transport select committee on the industry’s progress on Wednesday (3 March), and its enforcement action.
Refunds totalling £3.09 billion have been paid following in excess of one billion flight cancellations affecting some 29 million passengers.
“This is an enormously important issue for consumers," said Moriarty. "In the early days of the pandemic airlines were overwhelmed, that’s one of the reasons we took action. More than 95% of refunds have now been paid, totalling over £3 billion."
Moriarty, though, said he and the CAA would not become complacent, stressing there were still refunds yet unpaid, which he described as typically being "more complicated cases" – including some involving bookings made via OTAs.
He told the committee that most carriers had now fulfilled their refund obligations to passengers, or were past the 99% mark.
Both the CAA and the Competition and Markets Authority have, during the course of the pandemic to date, investigated airlines’ approaches to the refund crisis in travel.
The CMA launched its investigation in December, and said it would work closely with the CAA on this, although it is yet to reveal the results of its findings.
"Following a careful analysis of this evidence, the CMA will then decide whether to launch enforcement action against individual airlines," said the CMA in December.
During a previous appearance before the transport select committee in May, Moriarty revealed the CAA had launched a review of airlines’ refund practices. He also called on the government to strengthen the CAA’s enforcement powers, which currently involve a length court process.
In July, the CAA said the airline sector’s refund backlog was "substantial" with several "major carriers" among those taking too long to process refunds. It threatened Virgin Atlantic with enforcement action later that month owing to its performance on refunds.
The House of Lords has since echoed Moriarty’s request for greater CAA enforcement powers, calling for it to be better equipped to compel airlines to refund passengers and avoid further "inexcusable delays".
On Wednesday, Moriarty told the committee airline activity had been reduced to 10-20% of normal levels, and said it was vital all industry stakeholders came together in support of the work of the government’s new Global Travel Taskforce to restart travel.