The COVID-19 pandemic has triggered a drop in air travel and a
wave of airline flight cancellations. Reeling from widespread
operational challenges and sudden (and massive) loss of revenue,
many air carriers in recent weeks have scrambled to address the
needs of travelers whose plans had changed by offering vouchers for
future travel. Even though some governments had implemented
policies that permit carriers to do this,1 the U.S. Department of Transportation
(DOT) late last week issued a policy "clarification" that
requires air carriers to offer passengers refunds of fares paid,
even if the tickets at issue were non-refundable.2
DOT's regulatory scheme had given rise to considerable
confusion in the marketplace. There are no formal regulations
squarely on point, with the department basing its policy on its
view that a failure to make a refund would be an "unfair and
deceptive" practice prohibited by 49 U.S.C. 41712. While DOT
previously had issued informal statements
