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The Biden administration announced new rules to protect consumers from unexpected junk fees on air travel by requiring automatic cash refunds for canceled or significantly delayed flights.
In a statement released early Wednesday, the White House said: “These rules significantly expand consumer protections in air travel, provide an easier path to refunds for passengers who owe money, and provide consumers with the opportunity to “This could save more than $500 million each year in unexpected junk fees.” .
“If passengers owe money to an airline, they have the right to get their money back without any hassle or haggling,” said Transportation Secretary Pete Buttigieg. “Our new rules set new standards requiring airlines to promptly issue cash refunds to passengers.”
The first rule requires airlines to “provide a refund to passengers if their flight is canceled or significantly altered, checked baggage is significantly delayed, or purchased ancillary services, such as Wi-Fi, are not provided. “Automatic cash refunds must be made promptly.”
The changes, newly mandated by the Department of Transportation (DOT), mean consumers will no longer have to go through the hassle of searching an airline’s website, finding out how to apply, and filling out forms to apply for and receive a refund. “There will be no need to go through the same process.” This required extra ‘digital paperwork’ and sometimes hours-long waits on the phone,” the White House said.
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An American Airlines Boeing plane is seen at John F. Kennedy Airport on January 8, 2024. (Charlie Triborough/AFP via Getty Images/Getty Images)
Without the new rules, passengers are often receiving travel credits or vouchers by default instead of being refunded by many airlines, and if their flight is changed or cancelled, they can use that refund to transfer to another airline. The White House noted that it could not be rebooked. ” No need to go through a tedious request process. ”
The DOT is also now requiring airlines and ticket agents to inform consumers in advance of the charges for checked and carry-on bags when changing or canceling reservations. The White House said the second new rule would “prevent consumers from unexpectedly purchasing airline tickets from airlines and ticket agents (including both brick-and-mortar and online travel agents). “We will ensure that fees are avoided.”
President Biden (left) and Transportation Secretary Pete Buttigieg during an event at the White House on Monday, November 27, 2023 in Washington, DC. (Michael Reynolds/EPA/Bloomberg via Getty Images/Getty Images)
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The regulations require airlines to disclose baggage fees, change fees, and cancellation fees in advance, explain their pricing policies before purchasing tickets, share pricing information with third parties, and guarantee seats. Requires carriers to notify consumers that they are being discounted, provide both standard fares and passenger-specific fare information, and end bait-and-switch discounts. A switching tactic “some airlines use to disguise the true cost of discounted tickets.” The White House estimates that the rule would save consumers “more than $500 million each year in airfares they currently pay in excess.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| UAL | United Airlines Holdings, Inc. | 54.02 | +0.08 | +0.15% |
| Dal | Delta Airlines Co., Ltd. | 49.24 | +0.22 | +0.45% |
| AAL | American Airlines Group, Inc. | 14.22 | -0.31 | -2.13% |
| love | Southwest Airlines Co., Ltd. | 29.46 | -0.27 | -0.89% |
| keep | Spirit Aviation Co., Ltd. | 3.79 | -0.13 | -3.32% |
| alk | Alaska Airlines Group Co., Ltd. | 45.10 | -0.42 | -0.92% |
A United Airlines plane taxis for takeoff as a Lufthansa plane takes off from San Francisco International Airport on April 22, 2024. (Teyfan Coskun/Anadolu via Getty Images/Getty Images)
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Since President Biden took office, the Department of Transportation has provided more than $3 billion in refund and reimbursement assistance to airline passengers, including the impact of the 2022 Southwest Airlines holiday meltdown, according to the White House. It also includes more than $600 million in refunds to affected passengers. The department also fined airlines more than $164 million for consumer protection violations. From 1996 to 2020, the DOT imposed fines totaling less than $71 million against airlines for consumer protection violations.
FOX News’ Caroline McKee contributed to this report.
