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Biden-Harris Administration Announces Final Rule Requiring Automatic Refunds of Airline Tickets and Ancillary Service Fees

Rule makes it easy to get money back for cancelled or significantly changed flights, significantly delayed checked bags, and additional services not provided  

WASHINGTON – The Biden-Harris Administration today announced that the U.S. Department of Transportation (DOT) has issued a final rule that requires airlines to promptly provide passengers with automatic cash refunds when owed. The new rule makes it easy for passengers to obtain refunds when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased.

“Passengers deserve to get their money back when an airline owes them - without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg . “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”  

The final rule creates certainty for consumers by defining the specific circumstances in which airlines must provide refunds. Prior to this rule, airlines were permitted to set their own standards for what kind of flight changes warranted a refund. As a result, refund policies differed from airline to airline, which made it difficult for passengers to know or assert their refund rights. DOT also received complaints of some airlines revising and applying less consumer-friendly refund policies during spikes in flight cancellations and changes. 

Under the rule, passengers are entitled to a refund for:

• Canceled or significantly changed flights: Passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered. For the first time, the rule defines “significant change.” Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.  
• Significantly delayed baggage return: Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.  
• Extra services not provided: Passengers will be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service.

DOT’s final rule also makes it simple and straightforward for passengers to receive the money they are owed. Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone. In addition, passengers would receive a travel credit or voucher by default from some airlines instead of getting their money back, so they could not use their refund to rebook on another airline when their flight was changed or cancelled without navigating a cumbersome request process.  

The final rule improves the passenger experience by requiring refunds to be:

• Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.   
• Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.  
• Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.    
• Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.

The final rule also requires airlines to provide prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.

In addition, in instances where consumers are restricted by a government or advised by a medical professional not to travel to, from, or within the United States due to a serious communicable disease, the final rule requires that airlines must provide travel credits or vouchers. Consumers may be required to provide documentary evidence to support their request. Travel vouchers or credits provided by airlines must be transferrable and valid for at least five years from the date of issuance.

The Department received a significant number of complaints against airlines and ticket agents for refusing to provide a refund or for delaying processing of refunds during and after the COVID-19 pandemic. At the height of the pandemic in 2020, refund complaints peaked at 87 percent of all air travel service complaints received by DOT. Refund problems continue to make up a substantial share of the complaints that DOT receives.

DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration

Under the Biden-Harris Administration and Secretary Buttigieg, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and returned more money to passengers in refunds and reimbursements than ever before in the Department’s history.

• Thanks to pressure from Secretary Buttigieg and DOT’s flightrights.gov dashboard, all 10 major U.S. airlines guarantee free rebooking and meals, and nine guarantee hotel accommodations when an airline issue causes a significant delay or cancellation. These are new commitments the airlines added to their customer service plans that DOT can legally ensure they adhere to and are displayed on flightrights.gov .  
• Since President Biden took office, DOT has helped return more than $3 billion in refunds and reimbursements owed to airline passengers – including over $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022.   
• Under Secretary Buttigieg, DOT has issued over $164 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued less than $71 million in penalties against airlines for consumer protection violations.  
• DOT recently launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public.  
• In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2% — the lowest rate of flight cancellations in over 10 years despite a record amount of air travel.  
• DOT is undertaking its first ever industry-wide review of airline privacy practices and its first review of airline loyalty programs.

In addition to finalizing the rules to require automatic refunds and protect against surprise fees, DOT is also pursuing rulemakings that would:

• Propose to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, and the Department is working on its family seating junk fee ban proposal.  
• Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.   
• Expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity . The comment period on this proposed rule closes on May 13, 2024.

The final rule on refunds can be found at https://www.transportation.gov/airconsumer/latest-news and at regulations.gov , docket number DOT-OST-2022-0089. There are different implementation periods in this final rule ranging from six months for airlines to provide automatic refunds when owed to 12 months for airlines to provide transferable travel vouchers or credits when consumers are unable to travel for reasons related to a serious communicable disease. 

Information about airline passenger rights, as well as DOT’s rules, guidance and orders, can be found at   https://www.transportation.gov/airconsumer .

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Automatic Refunds and No More Hidden Fees: D.O.T. Sets New Rules for Airlines

The Transportation Department issued new requirements on refunds when flights are canceled or delayed and on revealing “junk” fees before booking. Here’s what passengers can expect.

By Christine Chung

The Transportation Department on Wednesday announced new rules taking aim at two of the most difficult and annoying issues in air travel: obtaining refunds and encountering surprise fees late in the booking process.

“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them — without having to ask,” said U.S. Transportation Secretary Pete Buttigieg in a statement, adding that the changes would not only save passengers “time and money,” but also prevent headaches.

The department’s new rules, Mr. Buttigieg said, will hold airlines to clear and consistent standards when they cancel, delay or substantially change flights, and require automatic refunds to be issued within weeks. They will also require them to reveal all fees before a ticket is purchased.

Airlines for America , a trade group representing the country’s largest air carriers, said in a statement that its airlines “abide by and frequently exceed” D.O.T. consumer protection regulations.

Passenger advocates welcomed the new steps.

Tomasz Pawliszyn, the chief executive of AirHelp, a Berlin-based company that assists passengers with airline claims, called it a “massive step forward and huge improvement in consumer rights and protection” that brings the United States closer to global standards in passenger rights.

Here’s what we know about the D.O.T.’s new rules, which will begin to go into effect in October.

There’s now one definition for a “significant” delay.

Until now, airlines have been allowed to set their own definition for a “significant” delay and compensation has varied by carrier . Now, according to the D.O.T., there will be one standard: when departure or arrival is delayed by three hours for domestic flights and six hours for international flights.

Passengers will get prompt refunds for cancellations or significant changes for flights and delayed bags, for any reason.

When things go wrong, getting compensation from an airline has often required establishing a cumbersome paper trail or spending untold hours on the phone. Under the new rules, refunds will be automatic, without passengers having to request them. Refunds will be made in full, excepting the value of any transportation already used. Airlines and ticket agents must provide refunds in the original form of payment, whether by cash, credit card or airline miles. Refunds are due within seven days for credit card purchases and within 20 days for other payments.

Passengers with other flight disruptions, such as being downgraded to a lower service class, are also entitled to refunds.

The list of significant changes for which passengers can get their money back also includes: departure or arrival from an airport different from the one booked; connections at different airports or flights on planes that are less accessible to a person with a disability; an increase in the number of scheduled connections. Also, passengers who pay for services like Wi-Fi or seat selection that are then unavailable will be refunded any fees.

Airlines must give travel vouchers or credits to ticketed passengers unable to fly because of government restrictions or a doctor’s orders.

The vouchers or credits will be transferable and can be used for at least five years after the date they were issued.

Fees for checked baggage and modifying a reservation must be disclosed upfront.

Airlines and ticket agents are now required to display any extra fees for things like checking bags or seat selection clearly and individually before a ticket purchase. They will also need to outline the airline’s policies on baggage, cancellations and changing flights before a customer purchases a ticket.

The rules, which apply to all flights on domestic airlines and flights to and from the United States operated by foreign airlines, have varying start dates.

For example, automatic refunds must be instituted by the airlines within six months. But carriers have a year before they’re required to issue travel vouchers and credits for passengers advised by a medical professional not to fly.

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Christine Chung is a Times reporter covering airlines and consumer travel. More about Christine Chung

Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .

US mandates new airline refund rules, fee disclosures

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Shares of private equity group CVC Capital Partners gained as much as 25% on their first day of trading in Amsterdam in what shapes up to be one of Europe's largest initial public offerings this year.

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5 facts about presidential travel abroad

American presidents and other world leaders frequently travel internationally, most commonly for conferences and bilateral meetings. This face-to-face diplomacy can offer insights into political priorities, partnerships and tensions, as well as key international issues.

The COVID-19 pandemic disrupted international travel in 2020 and 2021, but diplomatic travel picked up significantly in 2022. Here are five facts about presidential travel abroad:

Pew Research Center conducted this analysis to examine the international travel history of recent U.S. presidents and other heads of government through Jan. 20, 2023.

Dates and destinations of U.S. presidential travel prior to 2021 are from the U.S. Department of State’s Office of the Historian, which has recorded international presidential travel since 1901. Travel data for 2021 and 2022 was compiled from White House press briefings. Information on visits to Ukraine by other world leaders were independently verified through official government websites.

Only trips where the head of government met face-to-face with another head of government are included. For example, Biden’s trip to the UK for Queen Elizabeth II’s funeral is excluded as Biden did not hold any diplomatic meetings with the British prime minister or other world leaders. Visiting leaders were only counted if they were the head of government at the time of their visit. Depending on the country’s political system, “head of government” could mean president or prime minister, but not both. Heads of state, monarchs and interim leaders are excluded from the visiting leaders count.

U.S. President Joe Biden has traveled internationally less frequently than his last two predecessors did. Biden traveled to 17 places outside the United States in his first two years in office, visiting some more than once. He made six international trips in 2021, all of them to Europe. In 2022, he made 12 trips, including to Europe, the Asia-Pacific region and the Middle East. And in early 2023, Biden traveled to Mexico for the North American Leaders’ Summit.

All told, Biden’s international visit count trails those of former Presidents Donald Trump, who made 23 international trips to 20 places during his first two years in office, and Barack Obama, who made 32 trips to 24 places in the first two years of his presidency.

Biden’s first presidential trip abroad was to the United Kingdom, while Trump’s was to Saudi Arabia and Obama’s was to Canada. A president’s first trip is often used to signal the importance of a strategic alliance. On his trip to the UK in June 2021, Biden reaffirmed the U.S.-UK partnership and committed to close cooperation throughout his presidency. Typically, U.S. presidents visit a close ally on their inaugural trip: Canada was the first international destination for both Obama and Bill Clinton, while Mexico was the first destination for George W. Bush.

U.S. presidents have visited the UK the most in the past decade – a total of eight times. American presidents have worked closely with their British counterparts over the past decade, cooperating on issues from defense and counterterrorism to climate policy . Travel to the UK has largely centered around conferences and summits, but in 2019, Trump made a ceremonial state visit to the UK .  

In the past decade of presidential travel, Belgium (home to NATO headquarters ), France, Germany and Japan are the second-most visited destinations, at six times each.

So far, Biden has made the most trips to the UK and Belgium – two each. (Biden’s additional visit to the UK to attend the funeral of Queen Elizabeth II is not included in this count, since he did not hold any diplomatic appointments.) Just as these two European allies stand out in Biden’s presidential travel thus far, France stands out in Trump’s administration and Germany stands out in Obama’s – they visited those respective countries four times while in office.

Biden is among 38 heads of government who have visited Ukraine since the beginning of the war there. Biden traveled to Kyiv as part of a surprise trip in February, days before the first anniversary of Russia’s invasion .

While many heads of government visiting Ukraine have come from neighboring countries or countries in Europe (such as Poland’s prime minister, who has visited five times since the beginning of the war) that is not always the case. For example, Guatemala’s President Alejandro Giammattei and Guinea-Bissau’s President Umaro Sissoco Embaló traveled to Ukraine in July 2022 and October 2022, respectively.

Biden hosted 28 heads of government at the White House as of the end of 2022. Foreign leaders come to the U.S. for events including conferences, summits and bilateral meetings. Among those to visit the White House in 2021 and 2022 were then-Prime Minister Magdalena Andersson of Sweden, who met with Biden to submit her country’s application for NATO membership ; Ukrainian President Volodymyr Zelenskyy, who traveled to the White House on his first known wartime trip abroad ; and French President Emmanuel Macron, whose trip marked the first state visit of Biden’s presidency . In fact, the president of France has been the first leader to make a state visit to the U.S. for the past three presidential terms, with Macron visiting Trump in April 2018 and his predecessor, François Hollande, visiting Obama in February 2014. In April 2023, Biden hosted the second state visit of his administration , meeting with South Korean President Yoon Suk Yeol.

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Sarah Austin is a research assistant focusing on global attitudes research at Pew Research Center

A growing share of Americans have little or no confidence in Netanyahu

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When It Comes to Government Planes and Political Trips, Who Pays for a President's Campaign Travel?

In any election year, there’s a fuzzy line between governing and campaigning

When It Comes to Government Planes and Political Trips, Who Pays for a President's Campaign Travel?

Luis M. Alvarez

FILE - President Joe Biden boards Air Force One, March 11, 2024, at Andrews Air Force Base, Md. The White House and the Democratic National Committee are splitting the cost of Biden’s travel while he runs for a second term. It’s part of a longstanding arrangement that prevents taxpayers from being stuck with the full bill for political trips. (AP Photo/Luis M. Alvarez, File)

WASHINGTON (AP) — It’s no simple matter to move the commander in chief from point A to B, and it’s even more complicated when the president is seeking a second term.

President Joe Biden recently spent three days in Pennsylvania , a pivotal state in the 2024 campaign, and he plans to be in Virginia and Florida this coming week. The Democratic incumbent is seeking an edge over Republican Donald Trump as he ramps up his travels around the country.

Here's a look at how much it costs and who pays the bill during the campaign season.

HOW MUCH DOES IT COST?

It's not cheap to fly the president's fleet.

The White House uses Sikorsky helicopters known as Marine One when the president is aboard, as well as custom Boeing 747s that are immediately recognizable as the iconic humpback Air Force One. (Sometimes the president uses a more modest modified 757 if his destination is nearby or if a runway isn't long enough to accommodate the bigger plane.)

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Marine One costs between $16,700 and almost $20,000 per hour to operate, according to Pentagon data for the 2022 budget year. Air Force One is even more expensive: roughly $200,000 per hour.

But those figures only scratch the surface of the real cost. There also are military cargo planes that travel ahead of the president to make sure his armored limousines are in place, not to mention the enormous security apparatus that follows the president everywhere.

New aircraft are in the works because the current versions are decades old. Sikorsky is producing 23 updated helicopters to serve as Marine One. Boeing is building two new Air Force One planes , and they are scheduled to be finished by 2028. According to the Pentagon, the planes will come with all enhancements, including “a mission communication system," a “self-defense system” and even “autonomous baggage loading.”

WHO PAYS FOR THE TRAVEL?

When the president flies for political purposes, the campaign is supposed to pay the bill. But during an election year, the line between governing and campaigning can be fuzzy.

For example, Biden held an official event Wednesday in Pittsburgh, where he announced his proposal for higher tariffs on steel imported from China. The event, however, was a not-so-subtle opportunity for the president to rub shoulders with union members who are critical to his reelection, and he jabbed at Trump in his remarks. (At one point Biden joked that the former president was “busy right now,” a reference to the hush money trial that recently got underway in New York.)

It's up to the White House counsel's office to figure out what percentage of the president's travels are campaign related. That determines how much the federal government should be reimbursed by the Biden campaign. Sometimes the calculations aren't straightforward, such as when the White House adds an official event to an otherwise political trip.

Norm Eisen, a White House ethics lawyer under President Barack Obama, said both Republicans and Democrats have usually hewed closely to regulations.

“We had a set of rules on how to do the allocations," he said. "They’re intricate, and we stuck to them.”

No matter what, taxpayers end up on the hook for most of the cost. Campaigns do not pay for all the Secret Service agents and the rest of the security apparatus. In fact, they usually only cover the cost of Air Force One passengers who are flying for explicitly political purposes — sort of like buying a ticket on a particularly exclusive private jet.

HOW MUCH HAS BIDEN PAID?

Biden's campaign and his joint fundraising committee have been stockpiling travel cash in an escrow account maintained by the Democratic National Committee. From January 2023 until the end of last month, they deposited nearly $6.5 million.

Some of that money goes to general campaign logistics, such as staff expenses and advance work. The account is also used to reimburse the federal government for official aircraft used to transport the president, the first lady, the vice president and the second gentleman when they travel for the reelection effort.

So far, not much money has found its way back to the U.S. Treasury. As of the latest data available, just $300,000 has been provided.

It's safe to assume that Biden's campaign will end up forking over much more than that once the campaign is over. Trump's team reimbursed the federal government nearly $4.7 million for travel expenses during the 2020 race.

But Biden probably won't have trouble covering his bills. His campaign and the DNC had more than $192 million in cash on hand at the end of March.

AP White House Correspondent Zeke Miller contributed to this report.

Copyright 2024 The  Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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National Travel Survey mid-year data tables

The mid-year estimates provide faster indicators for key tables and include data for 12-month periods from July to June.

NTSMY0101: Trips, distance travelled and time taken: England, year ending June 2023 ( ODS , 7.24 KB )

NTSMY0303: Average number of trips, stages, miles and time spent travelling by mode: England, year ending June 2023 ( ODS , 12.4 KB )

NTSMY0403: Average number of trips, miles and time spent travelling by trip purpose: England, year ending June 2023 ( ODS , 11.7 KB )

NTSMY0409: Average number of trips and distance travelled by purpose and main mode: England, year ending June 2023 ( ODS , 13.4 KB )

NTSMY0601: Average number of trips, stages and distance travelled by sex, age and mode: England, year ending June 2023 ( ODS , 33 KB )

NTSMY0611: Average number of trips and distance travelled by sex, age and purpose: England, year ending June 2023 ( ODS , 24 KB )

NTSMY9903: Average number of trips by main mode, region and rural-urban classification of residence: England, year ending June 2023 ( ODS , 14.4 KB )

NTSMY9904: Average distance travelled by mode, region and rural-urban classification of residence: England, year ending June 2023 ( ODS , 15.8 KB )

NTSMY0001: Sample numbers ( ODS , 7.65 KB )

National Travel Survey statistics

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