by Donald Wood
Last updated: 2:15 PM ET, Thu August 1, 2024
United States Transportation Secretary Pete Buttigieg issued
a letter to the chief executive officers of the nations 10 largest airlines to
reinforce the need to provide customers with cash refunds when appropriate.
The U.S. Department of Transportation (DOT) outlined for
U.S. carriers that refund
requirements in the FAA Reauthorization Act took effect on May 16, 2024. ?
Buttigieg said the DOT expects airlines to clearly and
proactively inform passengers of their right to a refund whenever their flight
is canceled or significantly changed. Cash refunds must be automatic for
passengers when they are owed, not vouchers or credits.
In addition, carriers should make it easy for passengers to
get free rebooking, meals, hotels, and/or transportation to and from hotels as
promised during controllable disruptions. If passengers opt for vouchers or
credits after a canceled or significantly changed flight, they must be valid
for at least five years.
The DOT also denied requests from the airline industry for
additional time to comply with various aspects of the FAA Reauthorization Act
and the Departments April 2024 Final Rule on Refunds and Other Consumer
Protections. The DOT found no basis for adjusting the compliance dates set
forth in the ruling.
Buttigiegs letter read, in part:
As we emerge from the air travel disruptions caused by
the global technology outage earlier this month and the busy summer travel
season continues, I want to ensure there is clarity and a shared understanding
when it comes to the rights of air travelers and the obligations of U.S. and
foreign airlines. The operational challenges of this month have served as a
reminder of the importance of passenger protectionswhich now include a legal
requirement to clearly and proactively inform customers about their right to a
refund and provide prompt cash refunds when consumers do not opt to accept
travel alternatives following a cancellation or major delay.?
First, I need to remind airlines operating in the United
States that the refund requirements in the FAA Reauthorization Act took effect
upon enactment of the law on May 16, 2024. Now that this is law, our
expectation is that airlines are doing everything in their power to comply.?
Second, in recent weeks we have heard reports of
unacceptable customer service failures and received thousands of air travel
service complaints against airlines. When problems come to our attention, we
will investigate them and, where violations have occurred, use our enforcement
powers to hold offending airlines accountable.
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