By Dezimey Kum
The U.S. Transportation Department (USDOT) unveiled new mandates for quick cash refunds on canceled flights and upfront disclosure of airline fees.
Airlines and ticket agents must now disclose baggage, change, and cancellation fees upfront to passengers.
Gone are the days of receiving vouchers or credits. Passengers are now guaranteed to receive cash refunds within seven days for flights that have been canceled.
If bags are not delivered within 12 hours for domestic flights or 15–30 hours for international flights, baggage fees must be refunded.
President Biden announced in May 2023 USDOT would draft rules for compensation in cash for significant delays or cancellations, but a formal proposal is still pending.
Airlines are prohibited from charging seat selection fees, ensuring passengers are guaranteed seating without additional charges.
Discounts that do not include mandatory carrier-imposed fees cannot be advertised by airlines.
Biden has criticized the airline industry's practice of imposing hidden fees and delaying refunds.
Passengers are expected to save $543 million annually from excess airline fees with new regulations.
Transportation Secretary Pete Buttigieg underscores the significance of transparency in disclosing fees and the necessity of swift reimbursements for passengers.
Buttigieg hopes making refunds automatic reduces complaints, enabling more audits for airline compliance. However, people will still need to submit complaints to flightrights.gov.