British Airways will compensate 2,200 people who had bought the USD 40 tickets between the United States and India on October 2 after the carrier had mistakenly posted the wrong fare on its website.

The airline had cancelled the bookings and offered all affected passengers a travel voucher of USD 300.

An official statement said British Airways, in an agreement with the US Department of Transportation’s Aviation Enforcement Office will compensate consumers for cancellation penalties and other expenses incurred due to the carrier’s erroneous offer of USD 40 fare between the US and India.

"This agreement with British Airways will compensate passengers for losses they suffered as a result of the carrier’s mistaken fare offer," Transportation Secretary Ray LaHood said.

The lowest US-India fare being offered by British Airways prior to the mistaken ad, not including taxes, was over USD 750.