The Biden administration unveiled new stricter rules requiring airlines to provide automatic refunds within 20 days for flights canceled or significantly delayed or changed. New rules mandate airlines clearly disclose fees for extras like bags and seat selection upfront when fares are first displayed. Carriers have until April 2025 to implement displaying all ancillary fees, but consumers may start seeing changes within a year. Airlines collected over $43 billion in baggage and change fees from 2018 to 2022. The DOT says the new rules will save travelers nearly $500 million annually by ending "bait-and-switch" tactics and ensuring prompt refunds.
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00:00 It's Benzinga and here's what's on the block.
00:02 The Biden administration unveiled new stricter rules requiring airlines to provide automatic
00:07 refunds within 20 days for flights canceled, significantly delayed, or changed. New rules
00:12 mandate airlines clearly disclose fees for extras like bags and seat selection up front when fares
00:17 are first displayed. Carriers have until April 2025 to implement displaying all ancillary fees,
00:22 but consumers may start seeing changes within a year. Airlines collected over $43 billion in
00:28 baggage and change fees from 2018 to 2022. The DOT says the new rules will save travelers nearly
00:34 $500 million annually by ending bait and switch tactics and ensuring prompt refunds.
00:39 For all things money, visit Benzinga.com.