In a significant move to protect airline passengers, the Biden administration has introduced new regulations to ensure automatic cash refunds to passengers when due and to safeguard them from incurring costly surprise fees. These regulations represent a major step forward in enhancing consumer protections in air travel.
The new rules mandate airlines to issue refunds promptly, eliminating the need for passengers to explicitly request them or encounter unnecessary hurdles. Airlines and ticket agents must swiftly provide refunds within seven business days for credit card purchases and 20 calendar days for other payment methods. Importantly, refunds must be issued in cash or the original payment method used by the passenger. Airlines are prohibited from substituting vouchers, travel credits, or other forms of compensation unless the passenger explicitly chooses to accept alternative compensation.
To ensure transparency and fairness, airlines and ticket agents are required to clearly disclose any fees associated with checked baggage, carry-on bags, reservation changes, and cancellations. This information must be prominently displayed upfront when providing fare and schedule information on an airline’s online platform, eliminating hidden or misleading fees. The rules also prohibit airlines from advertising promotional discounts or low base fares that exclude mandatory carrier-imposed fees, effectively eliminating bait-and-switch tactics.
Furthermore, the Biden administration is actively pursuing additional rulemakings to address other pain points for airline passengers. These proposals include banning family-seating junk fees and guaranteeing that parents can sit with their children at no extra charge. They also seek to make passenger compensation and amenities mandatory, ensuring that travelers are adequately compensated for flight delays or cancellations.
The implementation of these new regulations is a testament to the Biden administration’s commitment to protecting consumers and holding corporations accountable. By empowering passengers and safeguarding them from unexpected charges, these regulations will significantly enhance the air travel experience for millions of Americans.
