President Biden’s push against corporate fees has extended to the airline industry with new rules announced by the Department of Transportation (DOT). These rules require airlines to provide more transparency regarding extra fees and automatically issue cash refunds in specific situations.
Secretary of Transportation Pete Buttigieg emphasized the importance of protecting passengers’ rights, stating that airlines must now give automatic cash refunds for flights canceled or significantly delayed, with a threshold of three hours for domestic flights and six hours for international flights. Additionally, if a passenger’s luggage is lost and not returned within 12 hours, airlines must refund checked bag fees.
The DOT’s announcement, made on Wednesday, sets a deadline of six months for airlines to comply with these new regulations. The move aims to ensure fair treatment of passengers and hold airlines accountable for their services.
President Biden’s broader economic agenda includes cracking down on what he calls “corporate junk fees,” aligning with these new rules that require airlines to be more transparent about extra charges. This includes accurately listing all additional fees on their websites when displaying fare prices.
The implementation of these provisions will occur over individual timelines ranging from six months to two years, reflecting a comprehensive effort to improve consumer protection and fairness in the airline industry.
