US Government Issues New Set of Refund, Fee Transparency Rules for Airlines

Image: Airline fees and charges.  (Photo Credit: Ivan Kmit / Adobe Stock)
Image: Airline fees and charges. (Photo Credit: Ivan Kmit / Adobe Stock)
Donald Wood
by Donald Wood
Last updated: 8:40 AM ET, Wed April 24, 2024

United States President Joe Biden and his administration issued a new set of rules for airlines outlining when to refund travelers for delays and how to properly disclose fees.

According to The Associated Press, the U.S. Department of Transportation (DOT) said that American carriers must provide “automatic cash refunds” within days of a flight being delayed significantly or outright canceled.

To avoid confusion, the DOT now universally defines a significant delay as a plane that takes off at least three hours after the scheduled departure time for domestic flights and six hours for international service.

The new rules also allow impacted passengers to reject the travel credits or alternative flights offered by airlines in the case of a delay.

As for baggage fees and refunds, the DOT now gives carriers 12 hours to return checked baggage to customers on domestic flights and 30 for international service. Otherwise, the impacted travelers will be eligible for a refund.

Passengers can also request a refund if the airline fails to provide advertised extras, such as seat selection or internet connection.

In addition, carriers and ticket agents must be transparent about charges for checked and carry-on bags and canceling or changing a reservation. On airline websites, all fees must be listed when travelers see the price and schedule.

The DOT estimates the new rules will save American travelers more than $500 million annually.

As for the impact on travel advisors, the American Society of Travel Advisors (ASTA) released a statement saying they are "carefully reviewing all aspects of the U.S. Department of Transportation’s (DOT) final rules to assess the potential impact on the day-to-day business operations for our travel advisor members. Our primary concern for our members has always been the potential that regulations aimed at protecting consumers purchasing air tickets, could in turn hurt the small ticket agencies who also sell air. As we review the final rules in full detail, we’ll plan to thoroughly update all ASTA members with a complete analysis in the coming days." 


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