Starting on June 25, the Department of Transportation will require airlines to provide full cash refunds for issues like cancelled flights and significant baggage delays.
According to the DOT, “Any cancellation or significant change in a flight is eligible for a refund, regardless of the reason for it,” including weather-related cancellations.
So, what exactly is a “significant change?”
An agency spokesperson told NBC 5 Responds, “Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections,” and more.
In addition to significant flight changes, consumers may be compensated for delayed luggage.
The DOT explained that passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.
Under the new rules, airlines must compensate passengers in cash or through their original form of payment.
Doing away with hidden fees
The Department of Transportation will also enact new rules regarding hidden fees.
Starting July 1, airlines are required to disclose all fees up-front instead of at checkout. The trade organization that represents and advocates for the U.S. airline industry, Airlines for America, has fought to reverse the new fee rule.
The group filed a petition for the U.S. Court of Appeals to review the Department of Transportation’s decision.
Airlines for America told NBC 5 Responds the fee transparency policies go beyond the DOT’s authority, saying airlines already go to great lengths to make their customers feel knowledgeable about these fees. It went on to say, disclosing all fees upfront would complicate the buying process.
As of Monday night, A4A’s request for court review was still moving through the legal system.
Airlines for America shared this statement with NBC 5 Responds regarding the fee transparency rule:
“U.S. airlines care deeply about the customer purchasing experience from first search to final purchase and invest heavily in their websites and mobile apps to ensure both transparency of all costs and ease of use for each customer with a purchase path tailored to that customer’s specific choices. Airlines already provide consumers with complete disclosure of all fees associated with air travel before they purchase a ticket.”
“The ancillary fee rule by the Department of Transportation will greatly confuse consumers who will be inundated with information that will only serve to complicate the buying process.”
“DOT’s attempt to regulate private business operations in a thriving marketplace is beyond its authority. DOT has failed to establish that consumers are unable to obtain information about ancillary fees. To the contrary, consumers are well-aware of the existence of ancillary services fees. Airlines go to great lengths to make their customers knowledgeable about these fees. In addition to the disclosures required by existing DOT regulations, airlines engage in competitive advertising and emphasize ancillary fee discounts and benefits when they promote their loyalty programs. The DOT ancillary rule is a bad solution in search of a problem.”
Additional details from the DOT on airline cancellation policies:
“Any cancellation or significant change in a flight is eligible for a refund, regardless of the reason for it. Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.”
“The final rule on refunds and other consumer protections will be effective on June 25, 2024, however the rule provides for lengthier implementation periods. The implementation period ranges from six months for airlines to provide automatic refunds when owed to 12 months for airlines to provide transferable travel vouchers or credits when consumers are unable to travel for reasons related to a serious communicable disease.”