The Transportation Department has implemented new rules that mandate airlines to provide cash refunds to passengers experiencing flight inconveniences. These inconveniences include significant delays, baggage delays, and service disruptions. The rules emphasize upfront disclosure of baggage fees and flight change costs, enhancing transparency for travelers. Secretary of Transportation Pete Buttigieg estimates that increased transparency will facilitate easier comparison shopping for travelers, potentially saving millions annually.
The regulations establish a formal requirement for passenger refunds in the event of domestic flight delays exceeding three hours or international flight delays exceeding six hours. Refunds for baggage fees will be mandated for bags arriving more than 12 hours late, and refunds for purchased services like Wi-Fi or upgraded seating will be required if the airline fails to deliver. These refunds must be processed promptly and automatically, within seven days for credit card refunds and 20 days for other payment methods.
This move follows a surge in refund-related complaints during the pandemic when air travel was significantly impacted. The Department of Transportation (DOT) received almost 47,600 complaints in 2022, over double the number received in 2021. More than half of these complaints centered around flight disruptions and refunds. Passengers often reported being pressured into accepting noncash flight credits or enduring extended wait times on customer service lines to request refunds. Many of these credits expired before the pandemic’s effects subsided and travel returned to normal levels.
The Biden Administration is finalizing key rule changes before Republicans potentially take control of Washington in the November elections. A federal law allows Congress to reverse recently implemented executive branch rules. The cutoff date for these changes falls in May, meaning rules finalized before that date will not be subject to review under the Congressional Review Act.
