Budget airlines Spirit and Frontier are shaking up the industry with the elimination of change and cancellation fees. This move signifies a major departure from the traditional fee-driven model, as airlines adapt to post-pandemic market conditions. The decision aligns with a trend among major airlines, who have already scrapped change fees for most fare types, and could be influenced by regulatory pressure against hidden fees.
The Biden administration has issued new rules that require airlines to provide automatic cash refunds for canceled flights and significant delays. The rules also require airlines to disclose upfront the fees they charge for checked and carry-on bags, canceling or changing a reservation, and other services. The Transportation Department estimates the new rules will save consumers more than $500 million a year.
