How to File a Complaint Against an Airline for Delayed Refunds in the Philippines (A Practical, Law-Based Guide as of 20 June 2025)
1. Legal Framework
| Source | Key Provisions Relevant to Refunds |
|---|---|
| Civil Aeronautics Act (R.A. 776, as amended) | Gives the Civil Aeronautics Board (CAB) jurisdiction over economic regulation of Philippine air carriers, including passenger consumer protection and refunds. |
| Joint DOTC–DTI Administrative Order No. 01-2012 “Air Passenger Bill of Rights” |
• Full refund (or rebooking/endorsing) when the airline cancels a flight or delays it ≥3 hours and the passenger opts not to fly. • “Prompt refund” required; later fleshed out by CAB circulars. |
| CAB Memorandum Circular No. 2019-01 (superseding older 2012 circulars) | Sets time-lines: 15 calendar days for cash transactions; 30 calendar days for credit-card or digital-wallet sales. |
| CAB M.C. No. 2020-08 (COVID-19 era, still in effect) | Allowed travel vouchers only when the passenger voluntarily accepts. Refusal revives the ordinary cash-refund time-lines above. |
| Consumer Act of 1992 (R.A. 7394) | Subsidiary recourse when the conduct involves deceptive or unfair sales practice. DTI has concurrent jurisdiction. |
| Civil Code of the Philippines | Ordinary written-contract actions prescribe in 6 years (Art. 1145); interest is 6% p.a. (or 12% if a loan in default^1). |
1 Bangko Sentral ng Pilipinas Monetary Board Circular 799 (2013) pegs legal interest at 6% per annum; older refund decisions still reference 12% before 2013, so recent CAB orders use 6%.
2. When Are You Entitled to a Refund?
| Scenario | Your Right |
|---|---|
| Airline-initiated cancellation for any reason | Full refund (fare + taxes + ancillaries). |
| Prolonged delay ≥3 h* and you opt not to travel | Full refund. |
| Downgrade of class of service | Refund of the fare difference plus statutory compensation (25% of fare difference) under A.O. 01-2012. |
| Force majeure (e.g. typhoon) | Still refundable; airline may cite “Acts of God,” but CAB policy is that involuntary cancellations trigger refund entitlement. |
| Passenger-initiated cancellation | Subject to airline’s published Conditions of Carriage; may be subject to fees, except when airline marketing misleads or fails to disclose restrictions. |
*The 3-hour trigger is counted from scheduled time of departure to (a) actual wheels-up or (b) definitive announcement of cancellation, whichever comes first.
3. Standard Refund Timelines
- 15 days – cash, debit, GCash, Maya, GrabPay.
- 30 days – credit card (processing time acknowledged by BSP and card networks).
- 12 months – COVID-19-era exceptional period under CAB M.C. No. 2020-08 applied only to tickets cancelled between 17 Mar 2020 and 31 Dec 2021 and is now sunset; today, standard timelines apply.
Failure to meet these deadlines constitutes “delayed refund.”
4. Step-by-Step Complaint Roadmap
| Stage | What to Do | Evidence Needed | Typical Outcome / Time |
|---|---|---|---|
| A. Write the Airline | • Send a formal demand letter or e-mail citing ticket number, passenger name, flight, cancellation date, and the 15/30-day rule. • Give them a definite deadline (“five working days from receipt”). |
Copy of e-mail or courier proof of receipt. | 7-10 days—many issues resolve here. |
| B. Escalate to CAB | • Download CAB Complaint Form (or draft a verified complaint). • Attach: ticket/itinerary, proof of payment, your demand, airline response (or lack thereof), photo ID. • Pay filing fee (≈ ₱1 000 domestic, ₱3 000 international). |
Originals + 2 photocopies; e-receipts acceptable for online filing (cab.gov.ph portal). | CAB sets conciliation conference within 15–30 days; 50-60 % settle at this stage. |
| C. Formal Hearing | If conciliation fails, the case proceeds before a Hearing Officer under the Rules of Practice in Air Commerce Cases (CAB Res. 58-A). | Sworn testimony, copies of e-mails, bank statements showing no credit. | Decision in 3-6 months; monetary award + administrative fine on airline up to ₱5 000 per passenger per violation (cab can cumulate). |
| D. Appeal | • Motion for Reconsideration (MR) within 15 days of decision. • If denied, file petition for review under Rule 43, Court of Appeals, within another 15 days. |
Copy of CAB decision. | CA review takes 1–2 years; deposit of fine is held in escrow pending finality. |
Tip: CAB accepts online submissions since 2023. Register, upload PDFs (≤10 MB each), and pay via LandBank LinkBiz.
5. Alternative or Parallel Remedies
- DTI-Fair Trade Enforcement Bureau (FTEB) – file if the airline engaged in deceptive marketing (e.g., “no-refund” claim that contradicts the Air Passenger Bill of Rights).
- Bangko Sentral Consumer Assistance Mechanism – useful when the friction is between the airline and your card-issuing bank on charge-backs.
- Small Claims Court (A.M. No. 08-8-7-SC, as amended) – if claim ≤ ₱400 000, no lawyer required, decision in 30 days; ideal when ancillary damages (hotel, missed tour) are involved.
- Mediation/ADR – many carriers are accredited with the Philippine Dispute Resolution Center (PDRC); a mediated settlement agreement is enforceable under R.A. 9285.
- Travel-agency umbrella groups – If booked through an agency, they can broker faster back-office refund processing via BSP-IATA settlement plan.
6. Template Demand Letter (Essential Elements)
Date
Airline Customer Relations Department
[Address / Email]
Re: URGENT DEMAND FOR REFUND – Booking Ref __________
Sir/Madam:
I purchased Ticket No. __________ on 10 April 2025 for Flight ___, scheduled 15 May 2025, Manila–Cebu. The flight was cancelled by your company on 12 May 2025. Under Joint DOTC-DTI A.O. 01-2012 and CAB M.C. 19-01, full cash refund must be effected within 15 calendar days.
More than 30 days have lapsed. I therefore DEMAND that the total amount of ₱ ____ be returned to the original mode of payment within FIVE (5) WORKING DAYS from receipt of this letter, failing which I shall file a formal complaint with the Civil Aeronautics Board and pursue all legal remedies, including interest and costs.
Very truly yours,
[Name, Signature, Contact Details]7. Frequently Asked Practical Questions
| Q | A |
|---|---|
| Does accepting a travel voucher waive my right to cash? | Only if voluntarily accepted in writing. CAB voids vouchers forced on passengers. |
| Can I claim interest or moral damages? | Yes. CAB often awards 6 % legal interest from the date of demand; moral/exemplary damages need proof of bad faith. |
| What if part of the itinerary is flown? | Pro-rated refund based on unused sectors; CAB uses distance-based proration. |
| Are international segments covered? | Yes, if the ticket was issued or first marketed in the Philippines, or the flight departs from/arrives in the Philippines. |
| Prescription period? | Six (6) years from the time the refund became due (Civil Code Art. 1145), not two years under the Montreal/Warsaw Conventions (those apply to baggage/injury). |
| Can I file a criminal case? | Only if there is fraud (estafa) or clear violation of the Consumer Act’s deceptive sales provisions. Most disputes remain civil/administrative. |
8. Possible Outcomes and Enforcement
- Voluntary Refund by Airline – CAB dismisses the case without prejudice to interest if already paid late.
- CAB Order – Airline must refund within 10 days of receipt of final order; non-compliance triggers ₱5 000/day fine plus suspension of Certificate of Public Convenience.
- Judgment by Small Claims Court – Executed through sheriff levy if airline ignores; airlines usually comply to avoid negative publicity.
- Garnishment/Bank Debit Memo – Holders of local bank accounts can be subject to garnishment upon motion after final judgment.
9. Pointers for a Strong Complaint
- Document Everything: screenshots of booking system, CSR chats, IVR recordings (under Data Privacy Act, recording your own conversation is legal).
- Act Quickly: The nearer to the 15/30-day mark you file, the stronger the inference of unreasonable delay.
- Group Complaints: CAB allows class-type consolidated actions; useful for tour groups.
- Stay Polite but Firm: Professional tone facilitates settlement; hostile language often delays conciliation.
- Know the Numbers: Quote the exact peso amount and legally mandated interest to show preparedness.
10. Take-Away Checklist
✅ Did I demand in writing and keep proof? ✅ Have 15 (-30) days run? ✅ Do I have copies of ticket, payment, and correspondence? ✅ Have I prepared the CAB form, verification, and certificate of non-forum shopping? ✅ Have I set aside the filing fee? ✅ Do I understand possible venues (CAB, DTI, Small Claims)?
Disclaimer: This article is for general information. Laws and administrative issuances may change, and the facts of each case differ. Consult a Philippine lawyer or the CAB Legal Division for advice specific to your situation.