New Airline Regulations: Mandatory Cash Refunds and Clear Fees

The U.S. Department of Transportation (DOT) has introduced new rules for airlines aimed at protecting passengers from unfair practices and hidden fees. The first set of rules ensures that passengers are entitled to cash refunds when their flights are canceled or delayed, rather than receiving expirable vouchers. Secretary of Transportation Pete Buttigieg emphasized that these new rules will save passengers millions of dollars in fees.

Additionally, the second set of rules requires airlines and travel agents to transparently disclose the cost of checked and carry-on baggage, as well as change and cancellation fees, upfront. This aims to prevent passengers from being surprised by additional fees during the booking process. Airlines must display these fees clearly and accurately, making it easier for passengers to understand the total cost of their travel.

While airlines have up to 24 months to fully implement these changes, the DOT expects them to update their refund policies for delays and cancellations within the next six months. The implementation of these rules may lead to a shift in how customers shop for airfare, as third-party booking platforms will also be required to display fare costs inclusive of baggage fees.

Overall, these new rules are designed to improve transparency and fairness in the airline industry, ensuring that passengers are treated better and have a clearer understanding of the total cost of their travel. Airlines will need to adapt to these changes to comply with the DOT’s regulations and provide a better experience for their customers.