By DAVID KOENIG (AP Airlines Writer)
The Biden administration The Biden administration issued final rules on Wednesday mandating that airlines must automatically issue cash refunds for things like delayed flights and improve the disclosure of fees for baggage or canceling a reservation. fees for baggage or canceling a reservation.
The Transportation Department stated that airlines are required to provide automatic cash refunds within a few days for canceled flights and “significant” delays. canceled flights and “significant” delays.
Currently, airlines decide how long a delay must last before triggering refunds. The administration is removing that flexibility by defining a significant delay as lasting at least three hours for domestic flights and six hours for international ones. a significant delay as lasting at least three hours for domestic flights and six hours for international ones.
Airlines can still offer another flight or a travel credit, but consumers can refuse the offer. consumers can reject the offer.
The rule also applies to refunds of checked-bag fees if the bag isn’t delivered within 12 hours for domestic flights or 15 to 30 hours for international flights. The rule also applies to fees for things such as seat selection or an internet connection if the airline fails to provide the service. checked-bag fees if the bag isn’t delivered within 12 hours for domestic flights or 15 to 30 hours for international flights. And it will apply to fees for things such as seat selection or an internet connection if the airline fails to provide the service. Complaints about refunds increased during the COVID-19 pandemic, as airlines canceled flights, and many people did not feel safe sharing a plane cabin with other passengers.
Airlines for America, a trade group for large U.S. carriers, noted that refund complaints to the Transportation Department have fallen 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 to help customers make ticket selections that best fit their needs.”
The group said the 11 largest U.S. airlines issued $43 billion in customer refunds from 2020 through 2023.
The Transportation Department issued a separate rule requiring airlines and ticket agents to disclose upfront what they charge for checked and carry-on bags and canceling or changing a reservation. The fees must be clearly displayed on airline websites when customers first see a price and schedule.
The rule will also require airlines to inform passengers they have a guaranteed seat they are not obligated to pay extra for, though it does not prohibit airlines from charging for specific seats. Many airlines currently charge extra for certain spots, including exit-row seats and those near the front of the cabin.
The agency stated that the rule will save consumers more than $500 million annually.
Airlines for America said its members “offer transparency and vast choice to consumers” from their first search.
The new rules will take effect over the next two years as part of a broad administration attack on what President Joe Biden calls “junk fees.”
Airlines are still allowed to offer another flight or a travel credit, but consumers can reject the offer. The new rules will take effect over the next two years as part of the administration's broader efforts to address what President Joe Biden refers to as “junk fees.” Last week, Transportation Secretary Pete Buttigieg revealed that his department will allow state officials in 15 states to help enforce federal airline consumer protection laws. enforce federal airline consumer protection laws.
