U.S. Transportation Secretary Pete Buttigieg has issued a stern reminder to the CEOs of the ten largest U.S. airlines regarding their legal obligations to provide passengers with cash refunds. This directive comes as part of the enforcement of the FAA Reauthorization Act, which took effect on May 16, 2024.
In his letter, Secretary Buttigieg outlined several expectations for compliance with the law:
1. Airlines must clearly inform passengers of their right to a refund when flights are canceled or significantly changed.
2. Cash refunds should be automatic for eligible passengers.
3. Airlines should facilitate easy access to rebooking, meals, hotels, and transportation during controllable disruptions.
4. Vouchers or credits offered in lieu of refunds must be valid for at least five years if chosen by passengers.
Secretary Buttigieg emphasized that these requirements are now law and that the Department of Transportation (DOT) expects full compliance from all airlines operating in the United States.
The letter also addressed recent customer service complaints and failures reported against airlines. "When problems come to our attention, we will investigate them and, where violations have occurred, use our enforcement powers to hold offending airlines accountable," Buttigieg stated.
The DOT has received requests from the airline industry for additional time to comply with aspects of the FAA Reauthorization Act and the Department’s April 2024 Final Rule on Refunds and Other Consumer Protections. However, Buttigieg made it clear that no extensions would be granted: "The provisions encoded in the FAA Reauthorization Act took effect upon its May enactment, and the law did not provide for extensions or delays."
He further encouraged air travelers to file complaints with the DOT Office of Aviation Consumer Protection if they encounter issues related to refunds or other consumer protections.
Buttigieg concluded by expressing optimism about the high demand for passenger air travel in America: "A thriving U.S. commercial aviation sector is good for all Americans, and all of our regulatory and enforcement activities are designed to ensure that this sector thrives on the basis of excellent safety, fair and vigorous competition, and strong customer service."
