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No Airline is refunding all non-refundable fares. WHY?

Top Contributor

Because if they do, many will likely go bankrupt. Preserving cash is the most important thing for airlines to do right now. Paying amount massive amounts of cash right now would kill some airlines.

 

Delta's CEO said it pretty well:

 

""Cash preservation remains our top financial priority right now. Making swift decisions now to reduce the losses and preserve cash will provide us the resources to rebound from the other side of this crisis and protect Delta's future," Bastian said. The Atlanta-based company is striving to save more than $4 billion in cash in the second quarter alone, he added.:

8 REPLIES 8
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Re: No Airline is refunding all non-refundable fares. WHY?

Rising Star

Yep

 

--TheMiddleSeat

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Re: No Airline is refunding all non-refundable fares. WHY?

New Arrival

@dfwskier @I personally don’t want a refund, I just want a longer expiration date-period. 

others who do not have a salary coming in it is understandably logical they need money back to pay bills

They should because they are ill or out of a job

Bur for me it’s just extending my date because I Will use it . 

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Re: No Airline is refunding all non-refundable fares. WHY?

Top Contributor

@jr13160 wrote:

 @I personally don’t want a refund, I just want a longer expiration date-period. 

others who do not have a salary coming in it is understandably logical they need money back to pay bills

They should because they are ill or out of a job

Bur for me it’s just extending my date because I Will use it . 


Did the extension of travel fund expiration dates that was announced yesterday, help your situation?

 

  

 

"

In recognition of the current travel environment, we are extending the expiration date of some travel funds:

 

  • Customers’ funds that have expired or will expire between March 1-May 31, 2020, will now expire June 30, 2021

  • Any newly created travel fund because of a flight cancellation between March 1-May 31, 2020, will have an expiration date of June 30, 2021 "
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Re: No Airline is refunding all non-refundable fares. WHY?

New Arrival

What about a travel fund expiring 06/08/20? Is this lost now?  It was applied toward my flight cost for a round trip 3/27/20-4/3/20. I originally purchased the ticket this travel fund was used toward on 9/26/20.  Why not extend any travel funds used on any flight for this time to a year from the travel date on the ticket.  I purchased with a Southwest Visa.  Will any funds used toward this same confirmation number be saved to use until same date of travel or June 2021?

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Re: No Airline is refunding all non-refundable fares. WHY?

Top Contributor

@LBG_59 wrote:

What about a travel fund expiring 06/08/20? Is this lost now?  It was applied toward my flight cost for a round trip 3/27/20-4/3/20. I originally purchased the ticket this travel fund was used toward on 9/26/20.  Why not extend any travel funds used on any flight for this time to a year from the travel date on the ticket.  I purchased with a Southwest Visa.  Will any funds used toward this same confirmation number be saved to use until same date of travel or June 2021

 

It was applied toward my flight cost for a round trip 3/27/20-4/3/20

 

To answer your question:

 

Any newly created travel fund because of a flight cancellation between March 1-May 31, 2020, will have an expiration date of June 30, 2021.

 

😉

 

In addition: With some thought, it should be easy to see how one can create a "newly created travel fund due to a flight cancellation between March 1 - May 31 2020" if necessary.

 

 

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Re: No Airline is refunding all non-refundable fares. WHY?

New Arrival

that's all well and good. The Fed is not going to let the airlines flounder. The little people like me are floundering. I can understand the airlines fearing losing capital. I just feel strongly that this is a catastrophic circumstance for all of us. I need my money now. I will re-book later when I find out when the things that were cancelled or postponed will be rescheduled. None of us have any dates for them. I will need to fly to get there, but with all of the uncertainty who knows when that will be. Even landlords have to forfeit rent payments from tenants who thru no fault of their own, are no longer working because all businesses are shut down. We are trying to reassure and help them and set their minds at ease that they will not be put out on the street. I should think the airlines could do the same. When the economy comes back, people will fly again. Right now we need to eat and take care of our neighbors.

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Re: No Airline is refunding all non-refundable fares. WHY?

New Arrival

There is a $50,000,000,000 bail out in the bill to bail out the airlines

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Re: No Airline is refunding all non-refundable fares. WHY?

Top Contributor

@menapaulson wrote:

There is a $50,000,000,000 bail out in the bill to bail out the airlines


Not yet there isn't. No bill has been passed. If an airline runs out of cash, it will go belly up

 

Both American and United went into bankruptcy as a result of the last downturn in 2008.

Both emerged much smaller, laying off tens of thousands of employees.

 

edit add:

 

Let's pretend that you are an airline CEO. you have to make a choice.  Your options are

 

1) pay out lots of refunds. Use up your cash reserve, and stand a real chance of driving the company into bankruptcy.

 

2) Pay out no refunds. Hack off lots of customers, but conserve cash and maximize the chance that bankruptcy won't happen.

 

What option do you choose?

 

This a very real question that airline execs are struggling with