Consumer magazine complains to regulators about Ryanair refund policy

A consumer magazine has complained to UK aviation regulators about Ryanair’s refund policy.

Laws obliging airlines to refund customers for cancelled flights and long delays became a flashpoint after Covid-19 grounded air travel.

Which? magazine says it has complained about Ryanair’s refund policy to Britain’s Civil Aviation Authority, because the airline automatically gives customers credit in a digital wallet, which they can use against the cost of future flights, instead of offering them cash.

The consumer publication argues that the law stipulates that airlines must offer cash refunds, and have to get customers’ agreement and written consent to vouchers or other services as an alternative.

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Which? maintains that Ryanair’s wallet is comparable to a voucher as it gives credit against the future cost of flights.

However, Ryanair responded that customers can opt for cash refunds via the wallet, with one click, and that it processes this in five days.

Which? says this means customers have to take an extra step to get cash refunds.

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The magazine cautions against taking voucher refunds from airlines generally as this prevents customers from shopping around the next time they are flying or they risk losing their cash if the company goes bust.

Ryanair dismissed the claim as “more fake news from Which?”. The airline said at the weekend that it automated refunds to simplify and accelerate the process by transferring funds to the wallet instantly on request.

The airline added that this allows customers immediate access to the balance for future bookings while they can withdraw the cash in just one click.

“All passengers’ rights and entitlements under consumer-protection law continue to be fully respected,” said Ryanair.

“Wallet funds are not subject to expiration dates, spending limits or any other restrictions.”

The airline added that wallet refunds were not subject to expiry dates, spending limits or any other restrictions.

Its statement pointed out that the Ryanair refund hub clearly informs customers that their cash is issued through the wallet.

Ryanair also noted that the hub included a section that told customers how to use the wallet or how to withdraw their cash.