New Airline Rules for Late or Delayed Flights
Travel

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Good news for the flying public! The Biden administration recently announced final rules aimed at enhancing consumer protections in air travel, particularly concerning refunds for delayed or canceled flights and increased transparency regarding airline fees. The measures, issued by the Transportation Department, are poised to reshape how airlines handle passenger refunds and disclose ancillary fees.
One of the key provisions mandates that airlines must automatically issue cash refunds for canceled flights and significant delays within a few days. Previously, airlines had discretion in determining the threshold for refund eligibility. However, under the new rules, a significant delay is defined as lasting at least three hours for domestic flights and six hours for international ones.
While airlines can still offer alternatives like rebooking or travel credits, passengers now have the right to reject such offers in favor of a cash refund. This shift aims to provide consumers with greater flexibility and control over their travel arrangements, particularly in situations where delays disrupt their plans.
Moreover, the regulations extend to refunds for checked-bag fees if luggage isn't delivered within specified timeframes—12 hours for domestic flights and 15 to 30 hours for international flights. Additionally, passengers will be entitled to fee refunds for services like seat selection or internet connectivity if the airline fails to provide them.
These initiatives come in response to a surge in refund complaints during the COVID-19 pandemic, reflecting growing consumer dissatisfaction with airline policies. Airlines for America, a trade group representing major U.S. carriers, highlighted a significant decline in refund complaints since mid-2020. The group emphasized airlines' efforts to offer various refund options, including fully refundable fares, to accommodate passengers' needs.
In tandem with refund reforms, the Transportation Department introduced measures to enhance fee transparency. Airlines and ticket agents are now required to disclose upfront fees for checked and carry-on bags, as well as for canceling or changing reservations. Fees must be prominently displayed on airline websites alongside fare prices and schedules, ensuring passengers have clear visibility into total travel costs from the outset.
Furthermore, airlines must inform passengers of guaranteed seat availability without additional charges, although they retain the discretion to charge for seat selection, including premium seating options. The agency estimates that these transparency measures will save consumers over $500 million annually.
The implementation of these rules represents a broader effort by the Biden administration to combat what it terms "junk fees" in the airline industry. Transportation Secretary Pete Buttigieg announced plans to collaborate with state officials in 15 states to enforce federal airline consumer protection laws, signaling a concerted push for greater accountability and fairness in air travel.
Overall, these initiatives mark a significant step toward empowering passengers with clearer rights and pricing transparency, fostering a more equitable and consumer-friendly air travel experience. As the rules take effect over the next two years, travelers can anticipate improved refund processes and enhanced disclosure of airline fees, heralding a new era of accountability and consumer-centricity in the aviation sector.