The United States government and the Department of Transportation have announced a proposed rule that would require airlines to automatically refund passengers for flight cancellations or significant delays.
The rule mandates automatic refunds for cancellations, significant delays, significant luggage delays, and non-provided ancillary services such as purchased Wi-Fi. Airlines must refund in cash or to the original payment method within a specified number of days.
This eliminates the need for passengers to navigate complex processes such as finding application methods on airline websites, filling out paperwork, or waiting on hold.
Furthermore, airlines and travel agencies must inform consumers in advance about fees for checked baggage, carry-on baggage, and reservation changes or cancellations to avoid promotions offering deceptively low base fares that exclude mandatory fees, a practice known as bait advertising. This aims to prevent unnecessary or unexpected fees.
According to estimates by the U.S. Department of Transportation, these initiatives could save consumers over 500 million U.S. dollars annually. The Biden administration has already supported the Department of Transportation in providing 3 billion U.S. dollars in refunds to air travelers.
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