Administration Clarifies Airline Refund Rules for Delays, Fees
The Biden administration has finalized new regulations to enhance the clarity and fairness of airline refund policies for delayed flights and to promote greater transparency regarding baggage and reservation fees.
Automatic Refunds for Significant Delays and Cancellations
A significant alteration to the regulations mandates airlines to issue automatic cash refunds within a specified time frame for canceled flights and substantial flight delays. Previously, airlines had the discretion to determine the duration of a delay that warranted a refund. However, the new rules establish clear parameters: delays of three hours or more for domestic flights and six hours or more for international flights will trigger an automatic refund.
Airlines retain the option to offer alternative flights or travel credits, but consumers have the right to decline these options and request a cash refund instead.
Extended Refund Coverage for Baggage Fees
The revised regulations also extend refund protections to checked baggage fees in cases where the bag is not delivered within designated timeframes: 12 hours for domestic flights and 15 to 30 hours for international flights.
Transparency in Fees
Separately, the Transportation Department has introduced a new rule that obligates airlines and ticket agents to provide upfront disclosure of all fees associated with checked and carry-on baggage, as well as cancellation and reservation changes. These fees must be prominently displayed on airline websites alongside the initial price and schedule information.
Additionally, airlines are required to inform passengers that they are not obligated to pay extra for a specific seat. Many airlines have adopted the practice of charging additional fees for preferred seating locations, such as exit-row seats and those in the front of the cabin. The new rule effectively prohibits such practices.
The Transportation Department estimates that these new regulations will collectively save consumers over $500 million annually.
