Part of your nonrefundable airline ticket is refundable, after all

April 6, 2009

It turns out your nonrefundable ticket isn’t entirely nonrefundable, after all. Taxes and government fees, which until now have disappeared into a void — and many believe, are simply pocketed by airlines — can be returned.

Just do what Susan Cornell did when Spirit Airlines wouldn’t refund the taxes and fees on her canceled ticket: dispute your credit card charge.

Several months ago, she asked Spirit for her money back, but it didn’t bother responding. Undeterred, she wrote to government officials and told her story to a national audience on Peter Greenberg’s radio show.

Today we checked our American Express bill, where we charged the Spirit tickets, and we were given a $42 credit yesterday from Spirit. This is the amount in dispute — We won!

Apparently they can’t keep the pre-paid travel taxes and government fees!

Maybe this small victory will put the spotlight on Spirit’s billing practices and force Spirit to return money to others. Can you imagine how much money that might be?

Yes, I can.

It has all the makings of a class-action lawsuit that would involve the entire airline industry, particularly if an audit showed that airlines kept all of the money paid in taxes and fees and passed none of it along to the government. But even if it did, passengers would be able to take up their case with governments and airports. I’d pay good money to see that trial.

Has anyone else managed to get a refund on fees and taxes on a domestic, nonrefundable airline ticket?

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15 comments

{ 15 comments… read them below or add one }

Flight Wisdom Guru April 6, 2009 at 8:38 am

We take issue with your implications in this article. The issue of taxes in the US on tickets is thorny.

Our analysis of your post is available here:

http://blog.flightwisdom.com/2009/04/06/taxes/

Martino Matijevic April 6, 2009 at 8:58 am

The way some airlines (over here in Europe, at least) get over that problem is that they charge you extortionate admin fees for refunding these charges that it effectively becomes useless claiming the refunds in the first place.

Christopher Elliott April 6, 2009 at 9:04 am

@flight wisdom. Excellent analysis. Thank you for sharing that link with me.

Rick Pittaway April 6, 2009 at 11:11 am

Southwest will refund your taxes – if you ask them. They don’t automatically send them to you, but they will return them if asked. There is no way for me to know whether they keep the tax or whether they pay it to the government

David Cottingham April 6, 2009 at 12:12 pm

I tried this discussion with USAir last year and got nowhere. Did not think about trying the c-crd route because it had been over a year since I charged the flight in the first place. dlc

Deborah Novak April 6, 2009 at 3:21 pm

I have asked the airlines several times about refunding these taxes before and was simply told nonrefundable. I have also asked the airlines to refund the fuel surcharge, and got nowhere. I have asked airlines to refund tickets due to hurricane damage to resort which had to close for almost a year, but they will only stand by their rule of international tickets must be reissued before original travel date. They don’t understand the resort had no eta on repairs.I believe the airlines keeps all these taxes, fees and to me this is against the law. These fees should go back to the traveler because they did not use the airport, security, fuel etc. I would love to see the proof that the airlines passed these on to the various departments.

David Z April 6, 2009 at 6:29 pm

Sadly we don’t refund taxes for cancelled or “unused” flights, either. I don’t recall the exact link somewhere at the IRS’ site, but has anyone had any better luck trying to get the refund from them for U.S.-based airlines and flights?

Steve April 7, 2009 at 12:13 pm

Maybe the Obama administration should take a look at these airlines to ensure they are remitting all of the taxes collected from passengers to the appropriate taxing authorities and not keeping the taxes on cancelled or unused non-refundable tickets.

Lisa S April 8, 2009 at 1:42 pm

British Airways refunded me the taxes on a ORD-MAN flight but charged $25 admin fee. I was happy with the return, which was relatively painless–Of course, it occurred after months of disputing credit card charges on a flight that was supposed to include a leg where I used miles and about which BA staff lied to me, parlaying my ignorance into purchase of a ticket I couldn’t use to get to the Isle of Man. Live and learn, I suppose.

Liz April 8, 2009 at 2:32 pm

Of course the airlines (or government) get a double dip on revenue/taxes/fees from unused tickets since those seats are re-sold, overbooked, etc…

Mike April 9, 2009 at 12:12 pm

Wow, never thought of the taxes and fees portion.

indeed those fees are not part of the airline’s charges but rather governmental charges assessed for your flight and departure nd arrival at a particular airport. While the ticket may be non refundable, the fees are not “the ticket” Likewise, any additional fees charged like fuel surcharges are also not “the ticket” and should be refunded. Seems to me like this is an easy one for government officials to look into.

Mark April 14, 2009 at 1:39 pm

I had to cancel 2 tix with spirit but they refunded the fees with no question asked the day i requested it

samir nasr November 19, 2009 at 11:45 am

I could not find one website to give detailed info about non refundable tickrts.
My qustion really is, Do I, as a passenger, have the right for full refund IF the airline company change my itenerary due to flight schedule change ?
I am asking about Dela in particulr.
Thanks
Samir Nasr

Hotel Employee December 19, 2009 at 6:18 am

This makes me wonder if the hotels are keeping this fee as well. I know that when a guest doesn’t show up they are charged one nights stay, including state taxes and HOT (Hotel Occupancy Tax). But as for the government getting that money, I have no idea. I think I’ll fire off a letter to a friend of mine that works in this department in Austin. Thanks for bringing it to my attention.

Elaine February 2, 2010 at 8:02 pm

I just got stuck with two Alaska non-refundable tickets, which have been cancelled for medical reasons. I don’t know if my insurance company will refund the cost, as the money is in my Alaska account as a credit for another flight within a year. I can’t use this credit within the year, and if the insurance company will not cover it, I will buy two fully refundable full fare tickets for as close to the amount as possible, and then cancel them in a month or so. I should be able to get the money back this way.

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