Bookings previous to CoVid19 not being refunded

Airlines should the minute the lockdowns started have realised that all bookings made was on a diferent basis for a world no longer existing. They should then have cancelled all previous bookings, reset their systems and treated it as beginning of time and asked all previous and potential new customers to book again when a new schedule where made available. Only if refunds are made can new customers be convinced that the money they pay for new bookings will not disappear in the same voucher hole as their previous now cancelled bookings. Specially if some of the carefull reopenings are reversed and more flights are again cancelled.

Problem is many airlines have been treating funds received for future bookings as a part of their cash reserves. Good accounting practices says they are unearned revenue and should be booked as such, only coming into the earned and profit accounts when travel happens. However many airlines have been tempted to see these amounts that can build up in their billions as to much cash to have on hand. They have doled out their other cash buffers on dividends and share buybacks. since they thought they always would have the buffer of the future bookings payments. And the faster you grow the more tempting it have been. Now the tide have gone out and we see who are left standing cash stripped.