The inconvenience of obtaining refunds and evading additional charges for flights may soon be alleviated due to two novel federal regulations. On Wednesday, the Transportation Department introduced measures mandating prompt and automatic refunds while addressing deceptive costs.
According to Transportation Secretary Pete Buttigieg, refunding passengers for cancellations or significant delays should be standard practice, but this is frequently not the case. To address this issue, the Biden administration has enacted a new refund policy requiring airlines to automatically reimburse travelers for flights experiencing substantial delays or extended baggage loss. Passengers will no longer have to endure submitting online forms or extended phone waits for their refunds.
Under the new regulation, airlines must issue refunds within a week, prioritizing cash or credit card payments over travel vouchers or flight credits. Secretary Buttigieg hailed the day as a significant victory for American travelers.
Erin Witte, representing the Consumer Federation of America, expressed her support for the new policy. She stated that consumers would no longer need to pursue refunds or establish their eligibility. The onus will now fall upon airlines or ticket agents.
Witte emphasized the increased control granted to travelers by the new rule. She explained that passengers could now decline airline services due to unsatisfactory treatment and demand immediate reimbursement.
A second regulation announced by the department targets hidden fees. Airlines will now be required to disclose upfront any additional costs associated with services such as carry-on baggage or flight changes. Secretary Buttigieg estimated that this measure could save American consumers over half a billion dollars annually.
Witte anticipated significant consumer benefits from both regulations. She believes they will empower travelers and allow them to make informed decisions. The ultimate goal, according to Secretary Buttigieg, is not only to address problems when they arise but also to minimize their occurrence by providing airlines with greater incentives to avoid issues in the first place. The new regulations are anticipated to take effect within six months.
