The Biden administration has announced new, stricter rules for airlines that will greatly benefit passengers. The Department of Transportation has directed that airlines must now automatically issue refunds to travelers for significant delays or cancellations. Refunds must be provided within seven to 20 days, depending on the payment method.
Additionally, airlines will be required to disclose fees for baggage and itinerary changes upfront. Stricter rules for refunding late bags and faulty Wi-Fi will also be implemented. The Department of Transportation estimates that these new regulations will save travelers an impressive half a billion dollars annually.
The main goal of these rules is to enhance consumer protection within the airline industry. Passengers will soon no longer need to request a refund when faced with significant flight disruptions. Refunds must be given within specific timeframes and in the original form of payment. Airlines will be obligated to refund ancillary fees for services not rendered, such as baggage and Wi-Fi. Baggage fees will also be refunded for significant delays in receiving luggage.
Furthermore, airlines must now exhibit charges upfront and provide passengers with information about seat selection. It is worth noting that airlines argue they already offer transparency and have given out billions in refunds during the ongoing pandemic.
These new rules are expected to be in place by late October, although some provisions may take longer to implement. Ultimately, these changes promise to greatly benefit airline passengers by ensuring they receive the refunds they are entitled to without having to jump through hoops.
