A handful of airlines will pay $900 million in refunds to passengers for cancelled or significantly changed flights due to the COVID-19 pandemic. The U.S. Department of Transportation announced Monday that Lufthansa, South African Airways and KLM Royal Dutch Airways were required to provide refunds in a timely manner.

What You Need To Know

  • Lufthansa, South African Airways and KLM Royal Dutch Airways will pay $900 million in refunds to passengers for cancelled or significantly changed flights due to the COVID-19 pandemic

  • The companies will also be fined $2.5 million in civic penalties, according to the Department of Transportation

  • Transportation Secretary Pete Buttigieg said the agency is holding airlines accountable when they fail to give passengers the refunds they're owed

  • The announcement comes about a month after the DOT announced airlines will soon need to pay automaic cash refunds to passengers on significantly delayed flights

“When a flight is cancelled or significantly changed, you shouldn’t have to fight with the airline to get your money back — and we’re holding airlines accountable when they fail to give passengers the refunds that they’re owed,” Transportation Secretary Pete Buttigieg said in a statement.

While the majority of the $2.5 million in civil penalties assessed against the three airlines will be paid to the U.S. Treasury, the refunds will be issued to passengers. Lufthansa is required to pay $775 million in refunds, KLM is required to refund $113.3 million and South African Airways will pay $15.2 million.

The refund announcement comes about a month after the Department of Transportation announced sweeping new rules for the airline industry that require them to pay automatic cash refunds to passengers on significantly delayed flights.