Delta Air Lines to Pay Millions in Class-Action Settlement

Delta Air Lines has reached a settlement in a class-action lawsuit stemming from widespread flight cancellations during the early stages of the COVID-19 pandemic. The airline giant has agreed to pay millions of dollars to disgruntled passengers who were affected by these disruptions.

The settlement, which was approved by U.S. District Judge Eleanor Ross, mandates that Delta will pay refunds and 7% interest in cash or credits to passengers who filed valid claims. The total fund allocated for these payments amounts to $27.3 million, according to documents filed in the U.S. District Court for the Northern District of Georgia.

The lawsuit, which attracted the participation of 14,096 individuals by the September 15 deadline, centered around Delta’s refusal to provide cash refunds to passengers whose flights were canceled between March 1, 2020, and April 20, 2021. Instead, the airline offered travel credits for future trips.

Approximately 19% of the claimants are eligible for refunds under the settlement. Delta, however, has not admitted to any wrongdoing as part of this agreement.

A Delta spokesperson clarified the airline’s position, stating, “In the settlement agreement from May 2023, Delta does not admit or acknowledge it failed to follow its contract of carriage or that it failed to provide refunds in accordance with its contract of carriage.”

Delta CEO Ed Bastian had previously informed the Department of Transportation that the airline had already issued $6 billion in refunds for disrupted flights since the pandemic’s onset in 2020. According to the spokesperson, these refunds covered over 11 million tickets, with 20% of them being processed in 2022.

The class-action lawsuit marked a contentious chapter in the airline’s handling of flight disruptions caused by the pandemic. Plaintiffs argued that they should have received cash refunds as per the terms of their ticket agreements, rather than being provided with travel credits. Additionally, they alleged that the refunds were not delivered in a timely manner.

Delta’s settlement is seen as an attempt to put this legal dispute behind it as the airline continues to navigate the challenges posed by the ongoing pandemic and the recovery of the aviation industry as a whole.