New DOT Regulation and What It Means for Travelers – Deseret News

Several airlines, including American Airlines, JetBlue, United Airlines and Delta Air Lines, are suing the Department of Transportation over a new rule “requiring carriers to be transparent about so-called ‘junk fees,'” according to Travel + Leisure.

This rule requires airlines to disclose all fees to passengers in advance and to provide immediate refunds of any fees due. The Department of Transport has told Travel + Leisure that travelers will be entitled to a refund if significant changes are made to their flight, if baggage is significantly delayed or if additional services – such as Wi-Fi and seat selection – are not provided.

While the rule is intended to prevent unnecessary fees, several U.S. airlines say it will confuse passengers.

What is the lawsuit?

According to USA Today, the airline group issued a statement expressing its opposition to the Department of Transportation’s new regulation, saying that “an attempt to regulate private companies in a thriving market exceeds its authority.”

The lobbying group Airlines for America has joined various airlines in the lawsuit. According to the Associated Press, Southwest remained offline. “Generally speaking, we support each airline’s right to price its products, but we believe that fees should be clearly and consistently disclosed so consumers can make informed purchasing decisions,” Southwest said.

Other airlines are challenging this regulation. “Airlines make every effort to inform their customers about these fees,” Airlines for America said, according to The Associated Press. “The Department of Transportation’s surcharge rules will significantly confuse consumers, who will be inundated with information that will only complicate the purchasing process.”

What does this mean for travelers?

According to the Department of Transportation, the new rule will save travelers half a billion dollars a year.

Before the rule change, individual airlines were responsible for their own standards and fare reimbursement. The regulation, according to DOT, will reduce passenger confusion by providing them with a structured, universal standard for refunds.

Pete Buttigieg, US Secretary of Transportation, said: “Passengers deserve a refund when an airline owes them money – without the headaches and haggling. Our new rule sets a new standard requiring airlines to promptly provide cash refunds to passengers.”

According to the DOT, refunds are expected to be “fast” and “automatic.” They will also be provided in the “original form of payment”, meaning airlines will no longer be able to substitute “vouchers, travel credits or other forms of compensation” unless the passenger accepts an alternative form of payment. In addition, all refunds must be paid in full, including “government taxes” and “airline fees.”

The DOT reported that refund complaints peaked at 87% of all air travel service complaints during the Covid-19 pandemic. The new rule aims to reduce the number of problems related to refunds.