Frontier Airlines fined $2 million by Department of Transportation for trickery

The Department of Transportation issued a $2.2 million penalty on Frontier Airlines this week for how the low-cost airline attempted to deceive its customers during the pandemic.

In a consent order published on Monday, the DOT wrote that Frontier Airlines failed to provide timely refunds to thousands of consumers for flights that the airline had significantly changed.

The DOT claimed that the airline attempted to thwart customers by modifying its definition of a “significant schedule change,” which would result in a refund. Moreover, the airline apparently applied the change retroactively to passengers who had purchased tickets under a prior — and more generous — refund policy.

“Until recently,” the DOT wrote, “Frontier failed to provide refunds to those passengers whose flight schedules were significantly changed under Frontier’s earlier definition.”

Adding further insult to Frontier customers, the airline was accused of bumbling its make-good for flyers.

The DOT wrote that the airline deceived consumers by providing flight credits that were valid only during a specific period. When the customers were informed they could redeem the flight credits through the airline's website, the DOT found that Frontier did not have “a functioning system for a portion of that time.”

The department determined that for a 15-day period in 2020, Frontier’s website wasn’t functioning, preventing thousands of Frontier loyalty consumers from redeeming flight credits.

In a statement, Transportation Secretary Pete Buttigieg said, “A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund.”

The fine is part of a recent spate of enforcement actions that the DOT has taken against six airlines. Frontier is the sole American airline; the other five are Air India, TAP Air Portugal, Aeromexico, El Al and Avianca. Collectively, these six airlines have been ordered to pay more than $600 million in refunds to airline passengers.

On top of these refunds, the DOT is assessing more than $7.25 million in civil penalties against the six airlines for their delays in providing refunds to their customers. The worst actor in the bunch is Frontier, which was ordered to pay $222 million in required refunds, as well as the $2.2 million penalty.

According to the report, the Office of Aviation Consumer Protection received over 2,600 consumer complaints since March 1, 2020, regarding Frontier’s refund and customer service practices.