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Airlines lobby US regulators for rollback on passenger refund requirements

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Airlines lobby US regulators for rollback on passenger refund requirements
Research
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Zach Griff Senior reporter | The Points Guy

Several major U.S. airlines, through their lobbying group Airlines for America (A4A), have submitted a request to the Department of Transportation (DOT) seeking the removal of several federal consumer protection regulations for air travelers.

The 93-page filing was made in May in response to a DOT docket related to an executive order from President Donald Trump aimed at promoting deregulation via the Department of Government Efficiency. The filing was recently brought to public attention by William McGee, senior fellow at the American Economic Liberties Project, and published by Frommers.

A4A represents a number of passenger airlines including Alaska Airlines, American Airlines, Delta Air Lines, JetBlue, Southwest Airlines, United Airlines, Hawaiian Airlines as well as cargo carriers such as Atlas Air, FedEx and UPS.

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The extent to which the DOT will adopt A4A's requests remains uncertain. However, the document outlines the airlines’ position on existing regulations. A4A described certain rules as "unnecessary costs and bureaucracy" and claimed they are "unfair" to airlines. The group suggested that airlines could regulate themselves and maintain fair treatment for passengers without federal oversight.

Among the main rules A4A wants repealed is one requiring automatic refunds for canceled or significantly delayed flights—a regulation established during the Biden administration. In its comments, A4A called this rule a "gross example of unlawful Federal overreach," stating that airlines have already "proven their commitment to taking care of their customers when flight cancellations occur or when flights are significantly delayed."

Another regulation targeted by A4A is a proposed requirement that would mandate disclosure of full ticket prices—including fees and taxes—when selecting flights instead of only showing them at checkout. The organization argued these standards are higher than those applied to other industries.

Additional regulations A4A seeks to eliminate include parts of rules regarding wheelchair handling for passengers with disabilities; guidance that would require seating families together without additional seat fees; requirements for information on airport signage; and dashboards maintained by both DOT and FAA detailing passenger rights during delays or cancellations and comparing airline policies on seat size and family seating as mandated under recent legislation.

As part of its deregulatory push, A4A has also requested that DOT reduce data tracking and publication within its monthly Air Travel Consumer Report (ATCR), calling such efforts “reporting burdens” with minimal benefit: "We also question whether the costs to generate this report have much benefit," wrote the lobbying group. "[H]ow many times is an ATCR even accessed?"

The ATCR is used by organizations like The Points Guy in compiling annual rankings based on airline performance metrics such as punctuality and baggage handling.

Lindsay Owens, executive director at Groundwork Collaborative—a progressive economic think tank—criticized A4A’s efforts: "The airline industry has long been a pioneer in ruthless and deceptive pricing," Owens said. "Now they're seeking to self-enforce the consumer protections they have a long track record of violating." She added: "If key passenger protections are further rolled back, the signal gets even clearer: in the Trump Administration, polices that put corporate profits over consumer wallets are allowed to soar freely."

William McGee stated that his organization plans further comments with DOT regarding these proposals and encouraged consumers to share their views with regulators.

Airlines for America did not respond to inquiries before publication.

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