The U.S. Department of Transportation is looking to provide some much needed relief to airline customers with a new set of regulations announced on Wednesday (Apr. 24).
Transportation Secretary Pete Buttigieg announced that airlines will now have to issue automatic cash refunds in the event of the following:
- Canceled flights
- Significantly delayed flights
- Baggage return delays
- Not receiving inflight amenities that you pay for (including Wi-Fi)
“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Buttigieg said (via the NY Post).
In addition, the new regulations will also scrap “surprise junk fees.” Airlines will now have to disclose up-front charges for checked/carry-on bags, reservation changes, and mandatory carrier-imposed and government charges.
This transparency rule also includes a provision to get rid of “discount bait-and-switch tactics,” misleading customers with discounts that may appear to apply to the whole price of the flight, only to apply to a smaller part of the price.
The disclosure requirement, according to Buttigieg, is estimated to save consumers upwards of half a billion dollars a year in surprise fees.
“Airlines should compete with one another to secure passengers’ business — not to see who can charge the most in surprise fees,” he added, per CNBC.
