BUSINESS & ECONOMY

Airlines will now be required to give automatic cash refunds for canceled and delayed flights

Apr 25, 2024, 9:00 PM

Passenger drop off their baggage at United Airlines in C Terminal at George Bush Intercontinental A...

FILE - Passenger drop off their baggage at United Airlines in C Terminal at George Bush Intercontinental Airport, Thursday, Dec. 21, 2023, in Houston. The Biden administration issued final rules Wednesday, April 24, 2024, to require airlines to automatically issue cash refunds for things like delayed flights and to better disclose fees for baggage or canceling a reservation. (Brett Coomer/Houston Chronicle via AP, File)

(Brett Coomer/Houston Chronicle via AP, File)

Associated Press — The Biden administration issued final rules Wednesday to require airlines to automatically issue cash refunds for things like delayed flights and to better disclose fees for baggage or canceling a reservation.
The Transportation Department said airlines will be required to provide automatic cash refunds within a few days for canceled flights and “significant” delays.

Under current regulations, airlines decide how long a delay must last before triggering refunds. The administration is removing that wiggle room by defining a significant delay as lasting at least three hours for domestic flights and six hours for international ones.

Airlines still will be allowed to offer another flight or a travel credit instead, but consumers can reject the offer.

The rule will also apply to refunds of checked-bag fees if the bag isn’t delivered within 12 hours for domestic flights or 15 to 30 hours for international flights. And it will apply to fees for things such as seat selection or an internet connection if the airline fails to provide the service.

Complaints about refunds skyrocketed during the COVID-19 pandemic, as airlines canceled flights and, even when they didn’t, many people didn’t feel safe sharing a plane cabin with other passengers.

Airlines for America, a trade group for large U.S. carriers, noted that refund complaints to the Transportation Department have fallen sharply since mid-2020. A spokesperson for the group said airlines “offer a range of options — including fully refundable fares — to increase accessibility to air travel and to help customers make ticket selections that best fit their needs.”

The group said the 11 largest U.S. airlines issued $43 billion in customer refunds from 2020 through 2023.

The Transportation Department issued a separate rule requiring airlines and ticket agents to disclose upfront what they charge for checked and carry-on bags and canceling or changing a reservation. On airline websites, the fees must be shown the first time customers see a price and schedule.

The rule will also oblige airlines to tell passengers they have a guaranteed seat they are not required to pay extra for, although it does not bar airlines from charging people to choose specific seats. Many airlines now charge extra for certain spots, including exit-row seats and those near the front of the cabin.

The agency said the rule will save consumers more than $500 million a year.

Airlines for America said its members “offer transparency and vast choice to consumers” from their first search.

The new rules will take effect over the next two years. They are part of a broad administration attack on what President Joe Biden calls “junk fees.” Last week, Transportation Secretary Pete Buttigieg announced that his department will let state officials in 15 states help enforce federal airline consumer protection laws.

Related:

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business & Economy

FILE- A large soft drink with a plastic straw from a McDonald's restaurant is shown in Surfside, Fl...

Associated Press

Trump pushes for plastic straws, declares paper ones ‘don’t work’

WASHINGTON (AP) — President Donald Trump is moving to reverse a federal push away from plastic straws, declaring that paper straws “don’t work.” Trump signed an executive order Monday, saying: “It’s a ridiculous situation. We’re going back to plastic straws” The move by Trump — who has long railed against paper straws, and whose 2019 […]

6 hours ago

Freshly-made pennies sit in a bin at the U.S. Mint in Denver on Aug. 15, 2007....

Jill Colvin, Associated Press

Trump says he has directed US Treasury to stop minting new pennies, citing rising cost

President Donald Trump says he has directed the Treasury Department to stop minting new pennies, citing the rising cost of producion.

18 hours ago

The U.S. Capitol is seen, Saturday, Feb. 1, 2025, in Washington. (AP Photo/Carolyn Kaster)...

Allessandra Harris Gurr

Privilege tax may be added to the Point of the Mountain

A proposed bill may bring a privilege tax to the Point of the Mountain development.

19 hours ago

Hiring sign is displayed at a health service center in Chicago, Tuesday, Jan. 21, 2025....

Paul Wiseman, Associated Press

US employers added just 143,000 jobs last month, jobless rate slips to 4% to start the year

WASHINGTON (AP) — U.S. employers added just 143,000 jobs last month, but the jobless rate slipped to 4% to start 2025 and the government revised November and December payrolls higher. The first job report of Donald Trump’s second presidency suggested that he inherited a labor market that is solid but unspectacular. Economists had expected about […]

4 days ago

FILE - A Chevron logo is shown at a gas station in San Francisco, Oct. 23, 2023. Gas prices in Utah...

Alton Barnhart

Utah gas prices increased by two cents amid tariff concerns

Utah gas prices have ticked up from last week due to the threat of tariffs, according to the Energy Information Administration. 

4 days ago

FILE - U.S. President Donald Trump, left, and Canadian Prime Minister Justin Trudeau talk prior to ...

Mariah Maynes

How will Trump tariffs impact consumers? It depends, but here are estimates

Economists agree that Trump tariffs could have consequences for the economy and American wallets.

6 days ago

Sponsored Articles

Full speed through the snow. A man on skis is pulled by his through the snow at full gallop Skijori...

Bear Lake Convention and Visitors Bureau

Get ready for an unforgettable skijoring adventure in Bear Lake!

“Skijoring the Bear” takes place this year on February 21-22 in Garden City, Utah.

the bedroom in a geodesic dome shows the night sky...

Clear Sky Resorts Bryce Canyon

Your front row to an extraordinary cosmos show

As America's first glass dome stargazing resort, Clear Sky Resorts Bryce Canyon is one of the world’s most unique and spectacular places to stay.

2 people huddled up in a blanket and warm clothes sipping hot chocolate...

Bear Lake Convention & Visitors Bureau

The best ways to spend your Christmas vacation in Bear Lake

If you're dreaming of a white Christmas this year, Bear Lake should definitely be on your radar. Read this guide for more!

big crowd of people under holiday lights in an outdoor market...

Western Nut

Our favorite family Christmas activities in Utah

We gathered up a list of our favorite activities, movies, and treats to try this holiday season that the whole family can enjoy.

an IT tech looks at a laptop in front of a server network...

Comcast Business

Tips to protect yourself from phishing attacks

Check out this resource from Comcast Business to learn more about phishing attacks and how to protect yourself from becoming a victim of one.

A surprise gift, wrapped and ready to bring holiday cheer! Whether for Christmas, a birthday, or an...

Western Nut

10 Holiday Gift Ideas to cover everyone on your list

This guide is for you if you need holiday gift ideas that will make a lasting impression. 

Airlines will now be required to give automatic cash refunds for canceled and delayed flights