Airlines to give automatic cash refunds to flyers under new Biden regulation

By Victor Reklaitis

Another new rule takes aim at 'surprise junk fees' in air travel

The Biden administration has rolled out a new regulation that aims to make airlines provide automatic cash refunds to passengers owed such compensation.

The newly finalized regulation requires carriers JETS to "promptly provide passengers with automatic cash refunds when owed because their flights are cancelled or significantly changed, their checked bags are significantly delayed, or the ancillary services, like Wi-Fi, they purchased are not provided," the U.S. Department of Transportation said in a news release.

Without the regulation, travelers would have to navigate cumbersome processes to receive a refund, and they'd only receive a travel credit or voucher from many airlines instead of getting money back, according to the DOT.

In addition, the DOT said it's offering protection against "surprise junk fees" by announcing a new regulation that requires airlines and ticket agents to "tell consumers upfront what fees they charge for checked bags, a carry-on bag, for changing a reservation, or cancelling a reservation."

President Joe Biden's secretary of transportation, Pete Buttigieg, is slated to speak about the new regulations at a press conference at 10 a.m. Eastern Wednesday.

The Biden administration has often targeted what it describes as "junk fees" as Americans continue to be frustrated about persistent inflation.

From MarketWatch's archives (May 2023): Biden proposes cash compensation from airlines for flight cancellations or major delays

And see: These U.S. airlines will cover meals, hotels when they're at fault, as Biden White House touts 'huge win for American travelers'

-Victor Reklaitis

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04-24-24 0600ET

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