There was good news this week for travelers. The U. S. Department of Transportation announced final rules to protect airline passengers with their ticket purchases and travel.

These rules require airlines and ticket agents to disclose all fees and charges upfront so that consumers can make an informed decision about the cost of travel. Airlines must now clearly show hidden fees such as fees for checked or carry-on luggage, changing or cancelling a reservation. They must also outline the airline’s change, cancellation, and baggage policies before a passenger buys their ticket.

These extra fees have been an increasing source of airline revenue. Revenue from baggage fees have increased by more than 30% between 2018 and 2022. Other fees such as fees to select a seat, have additional legroom, or to board early have made knowing the cost of air travel more confusing to consumers. This final rule will ensure that customers can understand the true cost of air travel.

New Airline Customer Service Dashboard

The Department of Transportation has created an Airline Customer Service Dashboard where customers can see each airline’s commitment to serving their travelers. Consumers can search by specific airline to see how the airline handles:

1. Commitments for fee-free family seating
2. Commitments for Controllable Cancellations
3. Commitments for Controllable Delays

If you are having travel issues this is an excellent resource to see what your airline will provide for you.

There are also pages that summarize what each airline will do for you should you have travel issues. For example, Allegiant, Frontier, Southwest, and Spirit Airlines will not rebook a passenger on another airline at no additional cost if a flight is cancelled.

New Rules About Refunds

Another important part of these newly issued rules is that starting in October, passengers will be entitled to cash refunds when their flights are canceled or significantly disrupted. Previously, airlines issued travel credit.

They defined “significantly changed flights” for all carriers to include:

1. Delayed arrival or departure by three hours (for domestic flights) or six hours (for international flights)
2. Require a change of departure or arrival airport
3. Increase a passenger’s number of connections
4. Downgrade a passenger’s class of service
5. Switch to a connecting airport or plane that is less accessible to a passenger with a disability

In October airlines will also have to refund fees for checked bags that arrive more than 12 hours late, and for services that were paid for but not delivered, such as in-flight Wi-Fi.

Refunds must be provided within 20 days, and airlines must pay customers in cash, or by crediting the original payment method.

The Department of Transportation also announced a bipartisan Airline Passenger Protection Partnership with eighteen state Attorney Generals to promote compliance with consumer protection requirements and hold airlines and ticket agents accountable.

It is encouraging to see these improvements implemented to support all travelers.

Ralph Broadwater, M.D., CFP®

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