> Allowing punitive damages would be a major change to the foundations of German civil law.
There ARE punitive damages the airline has to pay you if they cancel or delay your flight. It's EU law. See the sibling comment.
For instance if they cancel or delay a flight over 1500 km in the EU you're entitled to 400 Euro compensation on top of cost of ticket and other expenses you had due to it.
That's not punitive though. That's to compensate the traveler for caused inconvenience. It also happens to work as some form of punishment yes, but it's by far not high enough to work as a deterrence.
You are correct that the provisions of EU law can be construed as punitive damages. That’s why I emphasised the German legal tradition. Also, those damages do not apply in all possible situations of cancelled flights and they do not punish withholding refunds for no reason. If the airline cancels three weeks prior and then refuses to pay, the EU law does not apply and the behaviour we would like to disincentivise is not to honour the refund claims rather than the cancellation.
There ARE punitive damages the airline has to pay you if they cancel or delay your flight. It's EU law. See the sibling comment.
For instance if they cancel or delay a flight over 1500 km in the EU you're entitled to 400 Euro compensation on top of cost of ticket and other expenses you had due to it.