No money for airlines unless they reimburse their customers

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Several large airlines are asking for EU or US financial support during these difficult times.  The airlines are hurting - but they want to use tax money support while at the same time denying the average passenger a right to a refund when they have canceled flights. According to EC Regulation No. 261/2004, we are entitled to a full refund. But airlines are arguing that this is not the case. 

They have not lost money because they are not returning what has already been paid - they are losing on new flights. 

Airlines should not get financial support if they do not reimburse their customers.