The Biden-Harris Administration has made a significant move in the realm of airline passenger rights by announcing a final rule that mandates airlines to provide automatic cash refunds to passengers when owed. U.S. Transportation Secretary Pete Buttigieg emphasized the importance of this rule, stating, “Passengers deserve to get their money back when an airline owes them - without headaches or haggling.”
The new rule sets clear guidelines for when airlines must issue refunds, aiming to create certainty for consumers. Previously, airlines had varying refund policies, making it challenging for passengers to assert their rights. The rule specifies that passengers are entitled to refunds for canceled or significantly changed flights, significantly delayed baggage return, and extra services not provided.
A key feature of the final rule is the requirement for refunds to be automatic, prompt, and in the original form of payment. This ensures that passengers do not have to navigate complicated processes to receive their refunds and are promptly reimbursed for the full amount they are owed.
Furthermore, the Department of Transportation has been proactive in enhancing consumer protection under the Biden-Harris Administration. Secretary Buttigieg's efforts have led to the issuance of significant fines against airlines for consumer protection violations and the return of over $3 billion in refunds and reimbursements to passengers since President Biden took office.
In addition to the new refund rule, the DOT is working on proposals to ban family seating fees, make passenger compensation mandatory for flight delays or cancellations, and expand the rights of passengers who use wheelchairs.
The final rule on refunds and other important information on airline passenger rights can be found on the Department of Transportation's website. Airlines have varying implementation periods for the new rule, ranging from six to twelve months, to ensure compliance and better protection of passenger rights.
