The Biden administration has taken action to enhance consumer protection in the airline industry. On Wednesday, the Department of Transportation (DOT) announced new rules that will require airlines to provide cash refunds to passengers in certain situations, including when flights are canceled or significantly delayed, or if promised extra services are not provided. In addition, airlines will be required to disclose critical fees up front, without the use of hyperlinks.
Under the new rules, U.S. airlines will be required to issue cash refunds when they cancel or significantly change flights, significantly delay checked bags, or fail to provide promised extra services. The new rules stipulate that U.S. airlines must offer a cash refund when a domestic flight is more than three hours off schedule or when an international flight is six hours behind. Passengers will also be entitled to a refund if an airline increases the number of connections, downgrades them to a lower class of service, or offers connections at different airports or flights on other planes that are less accessible or accommodating to a person with a disability.
The DOT also issued new rules on Wednesday requiring airlines to disclose “critical fees” up front. These fees must be shown in detail and not be disclosed through a hyperlink. This measure is intended to provide greater transparency for consumers and make it easier for them to compare prices and fees when making travel plans.
The new rules will take 6-12 months to implement, the DOT said. Numerous U.S. airlines declined to directly comment on the changes, deferring to a statement released by Airlines for America (A4A). The group representing major airlines said that its members exceed DOT regulations regarding consumer protections and offer transparency and choice to consumers.
A4A stated that its member airlines provide a range of options, including fully refundable fares, to increase accessibility to air travel and help customers make ticket selections that best fit their needs. Consumers are given the choice of refundable ticket options with terms and conditions that best fit their needs at the first search results.
