The Biden administration on Wednesday issued final rules requiring airlines to automatically issue cash refunds for things like delayed flights and to better disclose baggage or reservation cancellation fees.
The Department for Transport said airlines will be required to provide automatic cash refunds within days for canceled flights and “significant” delays.
Under current regulations, airlines decide how long a delay lasts before triggering refunds. The administration removes this wiggle room by defining a significant delay as at least three hours for domestic flights and six hours for international flights.
Airlines will still be allowed to offer another flight or travel credit instead, but consumers can decline the offer.
The rule will also apply to reimbursement of checked baggage fees if the baggage is not delivered within 12 hours for domestic flights or 15 to 30 hours for international flights. And it will apply to fees related to things like seat selection or an internet connection if the airline fails to provide the service.
Complaints about refunds skyrocketed during the COVID-19 pandemic, as airlines canceled flights and, even when they didn’t, many people felt unsafe sharing a cabin. plane with other passengers.
Airlines for America, a trade group of major U.S. carriers, noted that refund complaints to the Department of Transportation have declined sharply since mid-2020. A spokesperson for the group said airlines “offer a range of options – including fully refundable fares – to increase accessibility to air travel and help customers make ticket choices that best suit their needs.” their needs “.
The group said the 11 largest U.S. airlines returned $43 billion to customers between 2020 and 2023.
The Department of Transportation issued a separate rule requiring airlines and ticket agents to disclose in advance what they charge for checked and carry-on baggage as well as for canceling or changing a flight. reservation. On airline websites, charges must be displayed the first time customers see a price and schedule.
The rule will also require airlines to inform passengers that they have a guaranteed seat for which they are not required to pay extra, although it does not prohibit airlines from charging people for choosing seats specific. Many airlines now charge extra for certain seats, including seats in the exit row and those near the front of the cabin.
The agency said the rule would save consumers more than $500 million a year.
Airlines for America said its members “provide transparency and ample choice for consumers” from their first search.
The new rules will come into force over the next two years. They are part of a broader administrative attack on what President Joe Biden calls “junk fees.” Last week, Transportation Secretary Pete Buttigieg announced that his department would allow representatives from 15 states to help enforce federal airline consumer protection laws.
NBC Chicago
