Three airlines, primarily from the German Lufthansa Group, are ordered to pay nearly one billion dollars to passengers for flight cancellations or significant modifications due to the COVID-19 pandemic.

The U.S. Department of Transportation announced that Lufthansa agreed to refund $775 million and pay a $1.1 million fine. Dutch airline KLM will refund $113.3 million and also pay a $1.1 million fine.

"Lufthansa has made all the payments it owed us. The payment delay, which the Department of Transportation penalizes, is solely due to the unprecedented level of refunds during the COVID-19 pandemic," a company spokesperson told the French Press Agency, emphasizing that the fine amount "does not differ from the norm."

Additionally, South African Airways agreed to refund $15.2 million and pay a $300,000 fine.

"When a flight is canceled or significantly altered, you won't have to fight with the airline to get your money back," said Transportation Secretary Pete Buttigieg, according to the announcement. The flight cancellation rate in the U.S. was less than 1.2% in 2023, the lowest level in over 10 years despite the record number of scheduled flights.

On April 24, the Department of Transportation announced that airlines in the U.S. are now subject to stricter regulations regarding passenger refunds and compensation in case of cancellation, modification, delay, or baggage loss.

Not only must these refunds be issued automatically, but the Department also specified what constitutes a "significant change": a modification of the arrival or departure time by more than three hours for domestic flights and more than six hours for international flights, departure or arrival at a different airport, additional intermediate stops, and downgrading from the booked class of service, among others.