Can AirAsia keep John Pracy’s $100? He’d booked a ticket from Cebu, Philippines, to Manila, the airline canceled the flight, and then it pocketed the money.

Oh, one more thing: The cancellation happened in April 2020, just as the pandemic started. 

He’s been chasing the refund ever since.

I know, I know. It’s been almost five years. Can AirAsia, a discount carrier with a reputation for tiny seats and no-frills service, just keep a customer’s money like that?

Pracy’s case is outrageous — but not for the reasons you think. Yes, it’s absolutely unacceptable for an airline to keep your money. Even if AirAsia refunds Pracy after my advocacy team’s involvement, its actions would be shameful and a new low, even for an Asian discount airline.

But hold that thought. This case has a surprise ending.

Before we get to it, though, let’s unpack this case. 

• Can airlines legally delay refunds for years?  
• What should you do if a company claims it has paid you, but you can’t find the money?  
• What kind of evidence do you need when an airline refuses to refund you?

Let’s take a closer look at Pracy’s problem.

“I was offered the option of a full ticket refund”

Pracy had booked three tickets on AirAsia Philippines in January 2020 for a flight in April. The pandemic hadn’t started yet, so he had every reason to believe the flight would operate normally.

But on March 14, he received an “urgent” email from AirAsia.

Dear Guest,

We regret to inform you that your AirAsia flight Z2-776 scheduled to depart from Cebu (CEB) to Manila (MNL) on April 03, 2020 has now been cancelled.

In compliance with the Philippine government’s directive imposing travel restrictions due to the current public health situation, AirAsia is cancelling its domestic flights to/from the Ninoy Aquino International Airport in Manila from 15 March to 14 April.

The airline offered three choices: a one-time flight change to a new date within 90 calendar days of the original departure; a credit valid for a year; or a full refund.

Pracy asked for a full refund. And he waited. And waited.

AirAsia promised him a refund within 12 to 16 weeks, but the money never landed in his account. Pracy asked the airline repeatedly for an update. He endured seemingly endless calls and wrote numerous emails, but five years later, all he had was a final and somewhat cryptic email from AirAsia saying it considered the matter “resolved.”

Yet it still had his money.

Can airlines legally delay refunds for years?  

No. If an airline owes you a refund in the United States, the U.S. Department of Transportation requires airlines to refund customers within seven working days. 

There are exceptions. If you paid by check, for example, the DOT gives airlines a month to send you a refund. During the pandemic, airlines took significantly longer — often with the blessing of regulators — because of the financial stress the pandemic placed on their operations. Passengers were fairly understanding, and some patiently waited up to year to get their money back.

But five years? No. Just no.

A case like Pracy’s should have been brought to the attention of Philippine regulators years ago. And if they couldn’t help, then Pracy should have filed a credit card chargeback. (Pracy is based in Australia, so he would have had to follow Australia’s consumer protection and chargeback rules, which are fairly consumer-friendly.)

Bottom line: Five years is way, way, waaaaay too long. 

But hold on. There’s a surprise ending.

What should you do if a company claims it has paid you, but you can’t find the money? 

If a company claims a refund request is resolved, but it isn’t, the first thing you should do is calm down. Someone has your money and you’re going to get it. It’s just a matter of time.

First, ask for a refund verification. Whether the airline sends the money back to your credit card or bank account, there’s always a transaction number that will prove the money has been returned. You should ask for that number. (Here’s our best guide to resolving your consumer problem.)

Escalate your complaint to someone who can help you. It’s possible — I’ve seen it — that a company insists it sent the money, but it actually hasn’t. A supervisor needs to review the case to ensure the refund hasn’t glitched somewhere. So you’ll need to send this to the top. (Here are the AirAsia executives.)

File a credit card chargeback. Your ultimate weapon here is a credit card chargeback. If you can file one within 60 days of the promised refund, and if you have the promise in writing, you stand an excellent chance of getting your money. A written promise can function as a credit memo, and credit cards will often side with you and return your money. 

Airlines should never keep your money after they’ve promised a refund. And again — sorry to repeat myself — but FIVE YEARS? Come on!

What kind of evidence do you need when an airline refuses to refund you?

A paper trail is super important when you’re asking for a refund. It becomes even more critical when you get into a conflict like Pracy’s, where the airline insists the matter is closed, but the money is still missing.

So what kind of paperwork do you need?

1. A record of your ticket purchase. That would include a credit card receipt, record locator, even a boarding pass. You need evidence that the airline took your money.
2. The airline’s refund promise in writing. Having a verbal promise is not enough. You need an email, letter or chat transcript showing that the airline owes you money. If you don’t have it, you might face some serious headwinds.
3. Any bank records that show the money didn’t reach your account. You may have to show that the money didn’t reach you. In other words, you’ll need to send the airline credit card or bank statements — if you can access them.

This might sound like a lot of effort, but remember that sometimes, airlines will keep more than $100. I’ve seen refund disputes for tens of thousands of dollars. It’s worth keeping a meticulous paper trail — and leaving nothing to chance.

“The refund has been processed”

I have to admit, I was so upset about Pracy’s case that my eyes were popping out of my head.

Five years. Five years!

I contacted AirAsia on his behalf, and the response was even more upsetting.

“Our customer support team has reviewed the matter,” a representative wrote back. “Upon checking, the refund has been processed on 08/03/2023.”

Huh?

“That is not correct, Christopher,” Pracy said. “The refund has still not been received.”

OK, that’s weird.

I asked Pracy to check one more time. And that’s when he found something: A deposit from an unknown source on March 10, 2023. For $100.

“So, it appears they did refund back then, but I hadn’t noticed at that time. They never sent an email confirmation and later, in their May 2024 email, they indicated they had just refunded me, which I couldn’t find,” he says. “Confusion all round.”

He apologized to me and my advocacy team for the trouble — which is a first for us.

“It was my error in not flagging that unknown deposit,” he says. “Thank you once again and I’m sorry for the trouble I caused.”

He’s right. AirAsia’s refund attempt was complicated. Instead of sending it back to his credit card, it tried to wire the money to his bank in Australia. This meant he would have to check a different account, and presumably AirAsia would identify itself as the sender of the money.

Pracy’s case is a reminder to check your bank account carefully before claiming that you didn’t get a refund.

To be clear, even three years is still way too long to wait for a refund. But at least it wasn’t five years — that would have been a new record.