"Wrong" reason is subjective. Tickets are nonrefundable because otherwise the network doesn't work, financially. Every hole in that increases costs far beyond the refunds themselves further down the line.
Air travel is not a high margin, luxury product, it's a lot margin mass market product with tons of competition - ergo costs are cut wherever possible. When you force airlines to take on costs for moral reasons, they basically are obligated to find as narrow an application of the moral reasoning as possible to keep costs down.
This is 100% false. Southwest Airlines is one of the most profitable airlines in the US and their refund policy for refundable flights is a full refund up to 10 mins before the flight. For nonrefundable flights you get full credit if you cancel up to 10 mins before your flight, with no additional fees.
During the pandemic, ALL airlines moved to full credit with no change fees if you cancelled your flight. Previously they would have absurd $200 change fees or loss of your flight.
The idea that airlines can’t survive with flexible, consumer friendly policies is a lie. Things like the check in fees or fuel surcharge are pure profit.
Flight credits expire (with US carriers, typically in 12 months, sometimes within only 3 months (Spirit), with European carriers, sometimes up to 3 years), and cannot be transferred to any other passenger [0], unlike even airmiles; and using them with partner airlines can be restricted; many passengers are unaware of much of that and airlines do not point it out, and rely on the fact that passengers may not realize till the credit has expired.
(In 7/2022, Southwest did uniquely eliminate expiration on flight credits unexpired from July 28, 2022 onward.)
Just because an airline only initially offers (restricted, expiring) travel credits, doesn't mean much; in some cases [1] passengers may be entitled to an actual money-back refund: (a) canceled flight b) passenger has documented medical circumstance c) cancellations due to Covid d) possibly other circumstance). One excellent advocacy resource is [2] Elliott.org 12/2022: "The complete guide to using your airline flight credit now". EU regulations are more pro-passenger than USDOT.
Southwest in 3/2022 unveiled its long-awaited new fare category "Wanna Get Away Plus" whose key perk is the ability to transfer flight credits, which Southwest calls travel funds (which sounds like intentionally misleading language, but anyway). But again, SW charge more for WGA+.
> Southwest Airlines... refund policy for refundable flights is a full refund up to 10 mins before the flight.
But that's the minority case: only Southwest's Anytime and higher fares are (money-back-)refundable, and they are typically way more expensive (2.5-4x) than non-refundable WGA fares. I can't find data but AFAIK most SW non-business passengers are WGA fares.
So the statement:
>> Tickets are nonrefundable because otherwise the network doesn't work, financially.
is in the general case true.
(One well-known travel hack with SWA for frequent travelers who didn't know their departure dates 3 weeks in advance used to be to buy 3+ different non-refundable tickets spaced out by say a week each, then refund whichever tickets you didn't end up needing. This was still cheaper than one Anytime fare.)
[0]: https://www.usatoday.com/story/travel/airline-news/2022/03/2...
[1]: https://www.usatoday.com/story/travel/advice/2020/10/09/flig...
[2]: https://www.elliott.org/ultimate-consumer-guides-smart-trave...
What people forget is companies are in competition, if every airline is forced to refund ticks then the industry simply reaches a new equilibrium with very slightly higher ticket prices. However, if any airline defects to worse customer service they all end up doing the same. Thus the need for customer focused regulations.
Wait. I don’t understand you. “Nonrefundable” means to me that you who bought a ticket can’t decide to not fly and ask for your money back.
If the airline for whatever reason decides to not fly the route, or doesn’t have the capacity then that is a different thing altogether. Are you arguing that it is okay for an airline to take your money, do not provide you with the service promised and keep your money?
Looking at a random domestic flight. The difference between the three tiers are about $30-$45 each.
Never buy Basic. But if you at least by the middle tier, while the tickets aren’t refundable, you can change the tickets without paying a fee or cancel a flight and get a credit that’s good for year.
The network works fine with people cancelling and changing flights all of the time.
I read somewhere that only 5% of seats sold on Delta are basic. I get it. It’s meant for people who are price sensitive. But aren’t those the ones who can least afford to lose money if something happens?
