The U.S. Department of Transportation received a significant number of complaints against airlines and ticket agents for refusing to provide a refund or for delaying processing of refunds during and after the COVID-19 pandemic.
According to the DOT, “at the height of the pandemic in 2020, refund complaints peaked at 87 percent of all air travel service complaints.” Since then, the Biden-Harris administration says it has helped return more than $3 billion in refunds and reimbursements owed to airline passengers “including over $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022.”
Today, U.S Secretary of Transportation Pete Buttigieg announced that airlines operating in the United States will soon be required to give an automatic cash refund to passengers when a flight is cancelled or significantly delayed (three hours domestic, six hours international).
The policy will also require airlines to refund luggage fees if a bag doesn’t arrive on time or if a passenger doesn’t receive a service they have paid for like Wi-Fi. (Refunds will be issued within seven business days.)
As seen in the announcement video below, Buttigieg said, “We’re also eliminating hidden fees. Passengers should know how much it’ll add to your total ticket price to check or carry on a bag, or to change or cancel your flight.”
Our department just issued rules to protect people from hidden airline fees and to require airlines to give passengers automatic cash refunds when owed. No more having to fend for yourself and jump through hoops to get your money back—airlines will have to automatically do this. pic.twitter.com/Jv7dFmnNkI
— Secretary Pete Buttigieg (@SecretaryPete) April 24, 2024
Buttigieg added: “This is about airlines treating customers better, and it will save people more than half a billion dollars” as the new requirements “avoid unwanted, expensive and unnecessary surprise airline fees.”
The new DOT rules, which will be enforced with a bipartisan group of state attorneys general to “fast-track the review of consumer complaints and hold airlines accountable,” are scheduled to roll out in October.