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

Dow Jones04-24

MW 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

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 24, 2024 06:00 ET (10:00 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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

Comments