US seeks to fine Air Canada $25.5 million over slow refunds

The U.S. government is seeking to fine Air Canada more than $25 million over what it says have been slow refunds for passengers whose flights were canceled since the pandemic started

WASHINGTON -- The U.S. Transportation Department said Tuesday it is seeking to fine Air Canada about $25.5 million for what it termed extreme delays in giving refunds to thousands of passengers whose flights across the U.S.-Canada border were canceled or rescheduled. The department said that since March 2020 it has received complaints from more than 6,000 consumers who claimed Air Canada canceled or changed their flights and then took five to 13 months to provide a refund. Air Canada did not immediately respond to a request for comment. The potential fine — Air Canada can contest it — is the latest fallout from thousands of flights that airlines canceled during the early months of the coronavirus pandemic as air travel plunged. The Transportation Department said it is investigating handling of refunds at other airlines, including U.S. ones.