You may still have your flight canceled or delayed, but representatives for President Joe Biden’s administration say changes that took hold this week should address some of air travelers’ biggest pet peeves when those cancelations occur.
New federal rules, the Democrat’s administration announced, will require airlines to provide immediate cash refunds when flights are canceled or significantly delayed, and when checked bags are unavailable. And airlines must also disclose all fees upfront.
“This is a big day for the airline passengers of this country,” U.S. Transportation Secretary Pete Buttigieg in a statement Wednesday. “If an airline cancels or significantly delays your flight, within 7 days they will be required to provide you an automatic refund, without your having to call and wait on hold, sort through digital paperwork, or haggle with the airline.”
Airlines would be required to promptly provide passengers with automatic cash refunds when owed because their flights are cancelled or significantly changed, their checked bags are significantly delayed, or purchased services such as Wi-Fi are not provided, according to the USDOT.
A similar policy mandates a refund for checked baggage that doesn’t arrive at a passenger’s destination. Finally airlines and ticket agents will be required to disclose all fees for checked and carry-on bags, changing flights and other areas to avoid surprises.
“Airlines will now be required to show you those costs up front so you have all the information to decide what travel option is best for you,” Buttigieg said. “It’s estimated that this will save Americans over a half billion dollars every year.”
An Airlines for America spokesperson said airlines offer transparency and vast choices to consumers.
“A4A members offer a range of options—including fully refundable fares—to increase accessibility to air travel and to help customers make ticket selections that best fit their needs,” said Marli Collier, a spokesperson for the airline trade association. “Consumers are given the choice of refundable ticket options with terms and conditions that best fit their needs at first search results.”
In 2023, Airlines for America members issued $10.9 billion in cash refunds.
There are conditions the get the refunds.
The USDOT final rule defined significantly delayed as when a passenger’s arrival or departure time is delayed three hours or more from what was scheduled from their origin for domestic flights and six hours or more for international flights.
It also covers if a passenger must make more connections than their in the original itinerary, has to depart from a different airport than where the flight was scheduled to leave from, or if they are downgraded to a lower class of service.
For passengers with disabilities, it covers a substitute aircraft that lacks one or more accessibility features that a flyer needs or if it can’t accommodate a mobility device.
Under the rules, airlines and ticket agents must provide refunds for tickets purchased with credit cards within 7 business days of refunds becoming due and 20 calendar days for tickets purchased with payment methods other than credit cards.
Automatic refunds are to be offered first, even if an airline offers alternative transportation. Flyers can decline alternative transportation and still get a refund.
Ticket agents would be allowed to keep the service fee charged for issuing a ticket in the event of a refund. Airlines would not be allowed to charge or keep a processing fee.
In case of a public health emergency, such as the COVID-19 pandemic, or a traveler being ordered to quarantine or advised by a doctor not to travel, an airline can issue a travel credit or voucher instead of a refund, but it must be valid for five years from the date it is issued and would be transferable. Airlines would be allowed to keep a processing fee in this situation.
Checked bag refunds would require passengers to file a mishandled baggage report when an airline fails to deliver the checked bag within 12 hours of the consumer’s flight arriving at the gate for domestic flights.
For international flights where the flight duration of the segment between the United States and a point in a foreign country is 12 hours or less, a refund is due when the airline fails to deliver the checked bag within 15 hours from when the passenger’s flight arrives at the gate.
When an international flight duration of the segment between the United States and a point in a foreign country is over 12 hours, a refund is due when the airline fails to deliver the checked bag within 30 hours of the flight’s arrival time at the gate. For both types of international flights, a traveler must file a Mishandled Baggage Report, under the rules.
In addition to disclosing fees up front at the time of ticket purchase, airlines and ticket agents must make it clear that purchasing preferred seat assignment isn’t necessary and that a traveler is guaranteed a seat, under the rules.
All mandatory fees must be disclosed, in addition to restrictions on carry-on luggage weight and size and policies about canceling or changing flights.
Travelers also can ask to see specific fee information based on the airline rewards program they use, their military status, or the credit card that they use under the rules.
Stories by Larry Higgs
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Larry Higgs may be reached at lhiggs@njadvancemedia.com. Follow him on X @CommutingLarry.