Airline ‘fast refund’ rules take off

The Biden administration on Wednesday slapped airlines with new rules that trigger instant refunds when flights are canceled, and clamp down on what the government calls “surprise junk fees.”

Under new Department of Transportation mandates, airlines must issue full cash refunds automatically rather than in response to customer requests, including when flights are canceled or significantly changed, when baggage return is significantly delayed and when customers do not receive inflight amenities like Wi-Fi for which they have paid.

“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Transportation Secretary Pete Buttigieg said.

Other new rules aims to bring more transparency to the costs of booking a flight by scrapping surprise junk fees.

Airlines must disclose up-front charges for things like checked and carry-on bags, canceling or changing a reservation as well as mandatory carrier and government charges. These costs must now be listed “clearly, conspicuously, and accurately” on airline web platforms or when they provide fare prices offline.

The rule also eliminates “discount bait-and-switch tactics,” in which airlines offer discounts that may appear to apply to the whole flight price, but really just apply to only part of the price.

Buttigieg said the rules will save airline passengers up to $500 million a year.