British Airways and Ryanair may have broken consumer law in not offering refunds to customers who couldn't legally take flights during the Covid pandemic, a watchdog has said.
The Competition and Markets Authority (CMA) said the airlines' stance could have left customers out of pocket.
BA offered vouchers and rebooking, and Ryanair offered rebooking, but both refused refunds, it said.
However, BA said it had "acted lawfully at all times".
Andrea Coscelli, chief executive of the CMA, said: "While we understand that airlines have had a tough time during the pandemic, people should not be left unfairly out of pocket for following the law.
"Customers booked these flights in good faith and were legally unable to take them due to circumstances entirely outside of their control. We believe these people should have been offered their money back."
The watchdog is concerned that during lockdowns in the UK, when most people were legally unable to fly, the airlines failed to offer refunds.
But BA said it offered "highly flexible booking policies at the same time as operating a vastly reduced schedule due to government-imposed travel restrictions, and we have acted lawfully at all times".
A spokesperson said: "During this unprecedented crisis we have issued well over three million refunds and helped millions of our customers change their travel dates or destinations and we're grateful to them for their ongoing support."
"It is incredible that the government is seeking to punish further an industry that is on its knees, after prohibiting airlines from meaningful flying for well over a year now.
"Any action taken against our industry will only serve to destabilise it, with potential consequences for jobs, business, connectivity and the UK economy."
Refund action
The CMA has been investigating various parts of the travel industry since July last year.
It opened its investigations after getting complaints about refunds, cancellations and price rises following the first lockdown in March.
The watchdog has received 148,000 complaints overall so far, with many thousands of those being about holiday refunds.
In April it threatened legal action against firms offering vouchers instead of refunds for accommodation.
Then in May it warned travel companies that they needed to be ready to refund customers, and said that five big package holiday firms including Tui, Lastminute.com and Virgin Holidays had refunded a total of £200m.
https://news.google.com/__i/rss/rd/articles/CBMiLGh0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL2J1c2luZXNzLTU3NDEwNDU50gEwaHR0cHM6Ly93d3cuYmJjLmNvLnVrL25ld3MvYnVzaW5lc3MtNTc0MTA0NTkuYW1w?oc=5
2021-06-09 07:34:30Z
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