New Airline Refund Rule Enhances Passenger Rights

Passengers across the United States can breathe a sigh of relief as the Biden-Harris Administration ushers in a new era of consumer protection in air travel. In a landmark move announced on Wednesday, April 24, 2024, the U.S. Department of Transportation (DOT) finalized a rule that mandates airlines to provide automatic cash refunds to passengers for canceled or significantly changed flights, delayed checked bags, and unused extra services.

Transportation Secretary Pete Buttigieg emphasized, “Passengers deserve to get their money back when an airline owes them – without headaches or haggling.”

Under the newly issued rule, passengers are entitled to refunds in specific circumstances:

1. Canceled or significantly changed flights: Passengers will receive a refund if their flight is canceled or significantly altered, provided they do not accept alternative transportation or travel credits offered. This marks a departure from previous practices where airlines set their own refund standards, leading to confusion among passengers.
2. Significantly delayed baggage return: Passengers filing a mishandled baggage report will be refunded their checked bag fee if their baggage is not returned within 12 hours of a domestic flight or 15-30 hours of an international flight, depending on its length.
3. Extra services not provided: Passengers will receive a refund for any extra services, such as Wi-Fi or seat selection, if an airline fails to provide them.

The rule aims to simplify the refund process for passengers, making it automatic, prompt, and in the original form of payment:

• Airlines must issue refunds without passengers having to request them explicitly.
• Refunds must be processed within seven business days for credit card purchases and 20 calendar days for other payment methods.
• Refunds must be provided in cash or the original payment method used by the passenger.

This initiative comes in response to a surge in complaints against airlines during and after the COVID-19 pandemic, where refund-related issues constituted a significant portion of DOT’s received complaints.

Secretary Buttigieg’s tenure at DOT has witnessed a historic focus on consumer protection, with the largest expansion of airline passenger rights in history. Since President Biden took office, over $3 billion has been returned to passengers in refunds and reimbursements, including significant amounts following airline disruptions like the Southwest Airlines holiday meltdown in 2022.

Looking ahead, DOT is continuing its efforts to enhance passenger rights, including proposals to ban family seating fees and to ensure compensation and amenities for passengers affected by flight delays or cancellations.

With these measures in place, passengers can expect a smoother and more transparent experience when navigating air travel, underscoring the Biden-Harris Administration’s commitment to prioritizing the rights and well-being of travelers across the nation.

About The Author

Editor

See author's posts