US fines IAG’s British Airways $1.1m

International Consolidated Airlines Group S.A. (LON: IAG) is in the spotlight today after the US government fined British Airways $1.1 million.

The Ministry of Transport has received more than 1,200 complaints against BA

Friday said it US Department of Transportation that the airline has not reimbursed its passengers for flights to and from the United States that have been canceled or postponed during the pandemic.

Passengers, the Department for Transport added, were unable to connect with customer service staff to discuss refund options.

It was also not possible to submit a refund request via the carrier’s website during this period. The fine is a strong deterrent against similar illegal practices in the future.

In total, the department said it had received more than 1,200 complaints against the UK’s flagship airline. Last week, British Airways had to make dozens of flights Cancel due to a computer problem.

British Airways responds to fine

British Airways denied the allegations on Friday. He also confirmed that he has paid more than five million passenger refunds since the start of the COVID pandemic.

“We acted legally at all times and offered customers the option of rebooking travel on other dates or requesting a refund if their flights were cancelled.“

He actually issued $550,000 in refunds to customers with non-refundable tickets. Last month, British Airways parent IAG reported a strong first quarter and raised its full-year profit forecast.

As of this writing, shares of the multinational aviation holding company are up more than 20% year-to-date.