Airline Stocks Drop as New Refund Rule Takes Effect

A new Department of Transportation rule requires airlines to provide full refunds for canceled, delayed, or significantly changed flights. This has led to a decline in airline stock prices, with United Airlines, American Airlines, Spirit Airlines, Delta, and Southwest Airlines all experiencing losses. The rule also applies to checked bag fees if baggage is delayed by more than 12 hours for domestic flights or 15-30 hours for international flights. Additionally, airlines are now required to clearly disclose “junk fees” for baggage, reservation changes, and discounts that only apply to partial flights.

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