The U.S. Department of Transportation (DOT) has taken a major step in protecting airline passengers by issuing a final rule that requires airlines to provide automatic cash refunds in specific circumstances. The rule, which aims to create certainty for consumers and prevent airlines from setting their own standards for refund eligibility, mandates that passengers be entitled to refunds for cancelled or significantly changed flights, significantly delayed checked bags, and extra services not provided.
This new regulation improves the passenger experience by requiring refunds to be automatic, prompt, in cash or the original form of payment, and for the full amount of the ticket purchase price. Airlines are also required to notify passengers affected by cancellations or significant flight changes of their right to a refund and provide travel credits or vouchers in instances where consumers are advised not to travel due to a serious communicable disease.
The need for this rule became evident during and after the COVID-19 pandemic, as the DOT received a substantial number of complaints against airlines for refusing to provide refunds. Refund issues made up a significant portion of all complaints received by the agency. Under the Biden-Harris Administration, the DOT has been committed to advancing airline passenger rights, issuing fines against airlines for failing consumers, and returning over $3 billion in refunds to passengers.
In addition to the new final rule on refunds, the DOT is also pursuing further rulemakings to ban family seating fees, ensure passenger compensation and amenities during flight delays or cancellations, and expand the rights of passengers who use wheelchairs. Airlines will have varying implementation periods, ranging from six to twelve months, to comply with the new regulations.
For more information on the final rule on refunds and other passenger rights initiatives, visit the DOT website. This move by the DOT signals a major win for consumers and a significant step towards ensuring fair treatment and protection for airline passengers.
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