The new rules mandate that airlines provide clear upfront information about baggage fees and flight change fees. This enhanced transparency allows travelers to compare costs and make informed choices, potentially leading to significant savings. Furthermore, the rules formalize a requirement for airlines to issue cash refunds for domestic flights delayed by more than three hours or international flights delayed by more than six hours. Additionally, refunds must be provided for baggage that arrives over 12 hours late and purchased services like Wi-Fi or upgraded seating that are not delivered. To simplify the process, the rules require airlines to issue refunds automatically and promptly, within seven days for credit card refunds and 20 days for other forms of payment. Transportation Secretary Pete Buttigieg emphasized the importance of these new measures, stating that they establish a new standard for providing cash refunds to passengers without unnecessary hassle. The rules also address the frustration often associated with call center wait times and online claim forms. Airlines will now be required to streamline these processes to ensure efficient and timely refunds for affected passengers. These new refund rules were developed in response to a surge in refund-related complaints during the height of the COVID-19 pandemic, which disrupted air travel. In 2022, the DOT received a substantial increase in complaints, with over half involving flight disruptions and refunds. Many travelers expressed dissatisfaction with airlines offering noncash flight credits or imposing lengthy wait times for refunds. The Biden Administration made a concerted effort to address these concerns and finalize key rule changes before a potential change in control following November’s election.
The Department of Transportation Announces New Rules for Airline Refunds
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