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Delta reverses course; offers reimbursement after widespread cancellations

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Delta reverses course; offers reimbursement after widespread cancellations
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Gary Leff Chief Financial Officer | View from the Wing

Delta Air Lines has announced a policy change to reimburse customers who purchased airline tickets on other carriers due to Delta's recent cancellations. Over the past few days, Delta has canceled more than 5,000 flights.

The airline describes this move as part of its ongoing effort to support customers. However, the timing of this decision means it may have limited benefit for many passengers. Delta continues to attribute the disruptions to factors beyond its control.

A section of Delta's statement outlines the costs they will now cover: "We know many customers have incurred unplanned travel expenses, including purchasing tickets on other airlines, rental cars, train tickets and more. Delta will cover reasonable costs for additional categories of expenses incurred during the duration of the travel waiver (which currently applies for flights between July 19 and July 28). As before, customers who have incurred hotel, meal or ground transportation expenses while in transit during this operational disruption may also submit eligible expenses for reimbursement."

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Commentary from travel industry sources includes One Mile at a Time calling it "the right thing to do" and Thrifty Traveler describing it as "a massive (yet potentially necessary) customer-friendly gesture."

Critics argue that this policy change comes too late to be useful for many affected passengers. Those who had already canceled their travel plans or waited days for a Delta flight missed out on potentially quicker alternatives with other airlines because they believed those costs would not be reimbursed by Delta.

By delaying this decision, Delta may have minimized the number of people eligible for reimbursement while gaining positive public relations coverage. In contrast, Southwest Airlines quickly offered compensation after their Christmas 2022 disruptions, including covering alternate airline flights and providing points to delayed passengers.

Despite these efforts, Delta's policy still states: "**Delta does not reimburse prepaid expenses, including but not limited to hotel reservations at the customer’s destination, vacation experiences, lost wages, concerts or other tickets." This means that customers with vacation packages or hotels booked through Delta are not eligible for refunds.

While helpful for some stranded passengers aware of this policy change and able to find alternative flights, critics suggest that earlier implementation could have provided greater assistance consistent with Delta's reputation as a premium carrier.

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