Airlines will now be required to provide automatic cash refunds for canceled and delayed flights news

The Biden administration issued final rules Wednesday that require airlines to robotically pay cash refunds for things like delayed flights and higher disclose baggage or cancellation fees.

The Department of Transport said airlines would be required to provide automatic cash refunds inside days for canceled flights and “significant” delays.

Under current regulations, airlines determine how long a delay must last before refunds are triggered. The administration removes this leeway by defining a major delay as lasting a minimum of three hours for domestic flights and six hours for international flights.

Airlines will still be able to offer one other flight or travel credit as an alternative, but consumers will be able to decline the offer.

This rule will also apply to refunds for checked baggage if the bags is just not delivered inside 12 hours for domestic flights or 15-30 hours for international flights. It will also apply to seat selection or web connection fees if the airline doesn’t provide the service.

Complaints about refunds have skyrocketed in the course of the Covid-19 pandemic as airlines canceled flights, and even after they didn’t, many individuals didn’t feel protected sharing a plane cabin with other passengers.

Airlines for America, a trade group for large U.S. carriers, noted that the variety of refund complaints filed with the Department of Transportation has dropped sharply since mid-2020. A spokesman for the group said the airlines “offer a range of options – including fully refundable fares – to make air travel more accessible and help customers choose the tickets that best suit their needs.”

The group said the 11 largest U.S. airlines returned $43 billion to customers between 2020 and 2023.

The Department of Transportation has issued a separate rule requiring airlines and ticketing agents to disclose upfront fees for checked and carry-on baggage, and for cancellations or changes to reservations. On airline web sites, fees must be visible the primary time you see the worth and flight schedule.

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The rule will also oblige airlines to inform passengers that they’ve a guaranteed seat for which they do not need to pay extra, even though it doesn’t prohibit airlines from charging fees for choosing certain seats. Many airlines now charge extra for certain seats, including seats in exit rows and near the front of the cabin.

The agency said the rule would save consumers greater than $500 million a 12 months.

Airlines for America said its members “offer consumers transparency and choice” from the primary search.

The recent rules will apply for the following two years. They are a part of a broad administration attack on what President Joe Biden calls “junk fees.” Last week, Transportation Secretary Pete Buttigieg announced that his department would allow state officials in 15 states to help implement federal airline consumer protection laws.