New Federal Rules Require Automatic Refunds for Cancelled Flights, Improved Notice of ‘Surprise Junk Fees’

The U.S. Department of Transportation said it would require  airlines to automatically issue refunds instead of travel credits and clearly disclose so-called “surprise airline fees,” which some refer to as “junk fees,” at the point of sale.
“These rules will significantly expand consumer protections in air travel, provide passengers an easier pathway to refunds when owed, and save consumers over half a billion dollars every year in hidden and surprise junk fees,” the DOT said in a statement.
The new rules are part of federal and local actions that have been taken to lower costs for consumers and take on corporate rip-offs.
“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them – without having to ask,” said U.S. Transportation Secretary Pete Buttigieg. “Today’s announcements will require airlines to both provide passengers better information about costs before ticket purchase, and promptly provide cash refunds to passengers when they are owed.”
Airlines must promptly issue refunds without waiting for the customer to request one or to have to “jump through hoops,” as the DOT put it. Refunds must be made via the original payment method.
Carriers must also disclose baggage, change, and cancellation fees upfront as well as end what the DOT termed “bait-and-switch” tactics that advertise low fares that turn out not to be available.
(Photo: Accura Media Group)