Biden Administration Announces New Rules for Flight Refunds and Fees
The Biden administration has announced new rules requiring airlines to give passengers automatic cash refunds when flights are canceled or significantly changed. The administration defines 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 instead, but consumers can reject the offer.
The administration said passengers can also get automatic refunds if their checked bags are significantly delayed or services they purchased, like WiFi, are not provided.
“Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how to make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone,” the Biden administration said in a news release.
According to the Department of Transportation, the final rule requires refunds to be:
* In the original form of payment for the ticket
* Provided within seven business days for domestic flights and 21 business days for international flights
* In cash for tickets purchased with cash
The DOT is also requiring airlines and ticket agents to tell customers what fees they charge for checked bags, carry-on bags, for changing a reservation or canceling a reservation.
“This ensures that consumers can avoid surprise fees when they purchase tickets from airlines or ticket agents, including both brick-and-mortar travel agencies or online travel agencies,” officials said.
The new rules will take effect over the next two years. Airline passengers can visit flightrights.gov to learn more.
