Investigation of Delta cancellations focuses on possibly misleading texts

Department of Transportation officials are scrutinizing whether the airline failed to communicate refund options to stranded passengers

New airline passenger rights laws require airlines to notify travelers they can receive refunds in cash if their flight is canceled or significantly delayed.

But regulators received reports that Delta passengers last week received messages saying that if they chose not to be rebooked, they would receive the cost of the ticket back as a credit, said the person, who spoke on the condition of anonymity to describe an ongoing investigation. Transportation Department officials contacted Delta on Saturday, spelling out the law and demanding that the airline correct its messaging, the person said.Transportation Secretary Pete Buttigieg then raised the issue directly in a phone conversation Sunday with Ed Bastian, the airline’s chief executive, the person said. Buttigieg told Bastian the airline needed to update its communications to comply with the lawDelta’s problems began July 19 during a global IT outage linked to CrowdStrike security software, but as other airlines quickly recovered, the Atlanta-based carrier struggled with a crew management system throughout the weekend. The airline ultimately canceled more than 5,000 flights before getting its operation running smoothly again on Wednesday, affecting about 500,000 people, according to the Transportation DepartmentDelta said in a statement that it was cooperating with the investigation and “takes our compliance obligations seriously.“Next to safety, Delta’s number one priority is to take care of our customers and our people, something we will continue to do as we recover from the unprecedented effects on our operation from the CrowdStrike-caused outage,” the company said

Buttigieg announced Tuesday that the department was opening an investigation after officials received more than 3,000 complaints. Officials have the power to levy fines if they ultimately find that Delta broke the law in its handling of the disruption.

“There’s a lot of things I’m very concerned about, including people being on hold for hours and hours, trying to get a new flight, people having to sleep on airport floors, even accounts of unaccompanied minors being stranded in airports, unable to get on a flight,” Buttigieg said at a news conference Tuesday

The department began communicating with airlines about their responsibilities to passengers affected by the disruptions on the morning of July 19, according to a memo officials sent carriers that was obtained by The Washington Post. The memo said that the department had determined that any disruptions were under the control of the airlines, which triggers refund protections for passengers. The memo reminded airlines of their obligations when passengers seek their money back: “prompt refunds are due

Delta has said it struggled to get a system for managing crews back up and running smoothly after the outages. Pilots and flight attendants were effectively lost in the airline’s system, spurring a wave of delays that lasted until Tuesday. It is not clear why Delta encountered long-running problems even as other airlines affected by the computer glitch restored their operations quickly.

Delta’s problems this week mirrored a meltdown at Southwest Airlines during the Christmas holiday period in 2022. The Transportation Department launched an investigation into those problems and ultimately fined the airline $140 million.

That incident also prompted lawmakers to tighten passengers’ rights as part of an update to aviation laws passed this year. That law permits airlines to offer an alternative to a refund like a voucher but only if the offer “includes a clear and conspicuous” notice of the passengers’ right to a refund.

But in an example of Delta’s message a customer posted on social media, the airline did not mention refunds, writing: “If you prefer not to rebook your trip, your ticket value will automatically be available as an eCredit that can be used towards a future Delta ticket.”

Consumer advocate William McGee, a senior fellow at the American Economic Liberties Project, said his organization also received reports that Delta was sending text messages informing travelers — including the family member of a colleague — their flight had been canceled and offering them an e-credit. There was no mention in the message that the person also could receive a cash refund, which McGee said is misleading, particularly because many travelers may not realize current rules entitle them to a cash refund.

When his colleague asked what his family member should do, McGee was clear. Responding in all caps, he said, “Tell her not to accept it. She’s entitled to a cash refund. And now I can’t help but wonder how many other people got this and just hit the button?”

Democratic lawmakers involved in writing the passenger rights law sent letters to Bastian this week questioning Delta’s response to the cancellations. Sen. Maria Cantwell (D-Wash.), the chair of the committee that oversees airlines, wrote Tuesday that Delta did not appear to be providing proper information about refunds on its website. Democratic leaders on the House Transportation Committee pointed to the new law Thursday in a letter asking Bastian how Delta was refunding passengers and reimbursing them for any additional costs.