Cathay Pacific Class Action Says Airline Denied COVID-19 Refunds

A recent Cathay Pacific class action lawsuit claims that the airline is wrongfully denying refunds to consumers with canceled flights.

Plaintiffs Winifredo and Macaria Herrera say that, in July 2019, they purchased a pair of tickets from Cathay Pacific for around $1,700. Their trip was scheduled to depart from San Francisco to the Philippines in September 2019 and return to the U.S. in February 2020.

While the couple was abroad, their return flight was allegedly canceled due to the coronavirus pandemic.

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Flights, especially international flights, have been dramatically affected by the coronavirus outbreak.

Even in countries where travel is not restricted, many consumers are canceling their flights to protect themselves – leading airlines to reduce the number of flights they are offering.

“It was entirely known and foreseeable to Defendant that many of its previously scheduled flights, arriving in and departing from the United States, would need to be cancelled in order to protect the public from a catastrophic infection spread and loss of life and respond to the dramatically decreased demand for air travel,” the couple notes in their Cathay Pacific class action lawsuit.

As a result of the coronavirus cancellation affecting their flight, the Herreras say they had to pay for two $700 tickets from another airline in order to return to the country. Unfortunately, their troubles would allegedly continue after returning home.

According to the couple’s Cathay Pacific class action lawsuit, the Herreras were informed by the airline that they would receive a refund for their cancelled flight. However, upon returning to the States, they allegedly received an email informing them they that would be receiving a voucher instead of a monetary refund.

Unlike a refund, the offered flight vouchers are reportedly time-sensitive and are even associated with future expenses.

“The future flight credits provide Defendant additional opportunities to charge service, processing, baggage, and other fees that will ensure Defendant additional future profits—while retaining Plaintiffs’ cash in the interim—substantially diminishing any value for Plaintiffs and the putative class,” the Cathay Pacific class action lawsuit argues.

Even worse, the voucher had to be used within a year of purchase – meaning that the Herreras would have to use it by July 2020 “despite the continuing impacts of the global pandemic, particularly on international travel.”

Due to these concerns, and their desire for a monetary refund, the Herreras have allegedly sent three emails attempting to contact Cathay Pacific. However, their requests have reportedly been ignored.

According to the Cathay Pacific class action lawsuit, denying refunds to consumers is unfair, unlawful, and violates the airline’s passenger agreement.

Additionally, the plaintiffs argue that purchasing a ticket with Cathay Pacific amounts to a contractual agreement which gives passengers the right to a refund for cancelled flights.

By denying refunds to the Herreras and other consumers, Cathay Pacific has allegedly violated their own agreements.

“Defendant quietly ceased honoring contractual agreements with customers, including Plaintiffs and the putative class, by discontinuing full monetary refunds for cancelled and substantially rescheduled flights,” the Cathay Pacific class action lawsuit claims.

The Herreras also note that the U.S. Department of Transportation has put out its own recommendations for airlines.

In an April 3 notice, the DoT reminded airlines carriers “that passengers should be refunded promptly when their scheduled flights are cancelled or significantly delayed.”

The regulator noted that “the COVID-19 public health emergency has had an unprecedented impact on air travel,” but stressed the fact that “the airlines’ obligation to refund passengers for cancelled or significantly delayed flights remains unchanged.”

However, despite their agreement and recommendations from the DoT, Cathay Pacific allegedly chooses to deny refunds to consumers in need.

“In the midst of the greatest public health and economic crisis in living memory, Defendant, a massive transnational air carrier, has sought to shift its losses onto its innocent passengers, furthering the financial hardship endured by people across the country,” the Cathay Pacific class action lawsuit claims.

The Herreras seek to represent a Class of consumers who purchased tickets from Cathay Pacific for travel scheduled after Feb. 1, 2020.

The Herreras are represented by Tina Wolfson, Robert Ahdoot, and Bradley K. King of Ahdoot & Wolfson PC, as well as David R. Dubin and Nicholas A. Coulson of Liddle & Dubin PC.

The Cathay Pacific Refund Denial Class Action Lawsuit is Herrera, et al. v. Cathay Pacific Airways Ltd., Case No. 3:20-cv-03019, in the U.S. District Court for the Northern District of California.

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