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Airline passenger rights largely unchanged amid regulatory debate

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Airline passenger rights largely unchanged amid regulatory debate
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Zach Griff Senior reporter | The Points Guy

Airline passenger rights have been under discussion following recent developments involving both government and industry actions. Last week, airlines lobbied the Trump administration to remove various consumer protection regulations, and the administration announced it would eliminate a Biden-era rule that required airlines to compensate customers for delays and cancellations.

Currently, most major air travel protections remain unchanged. Passengers are still entitled to refunds if their flight is canceled or significantly delayed and they choose not to travel. Rules established by former Secretary of Transportation Pete Buttigieg require these refunds to be issued automatically to the original form of payment, including add-ons such as checked bags or seat assignments. The rules apply to flights canceled by the airline or those delayed by at least three hours domestically or six hours internationally, covering only the unused portion of a trip.

Refunds do not extend to new expenses resulting from delays or cancellations, such as hotel stays after a canceled flight. The Department of Transportation’s 24-hour refund policy remains in effect for tickets purchased at least one week in advance, though exceptions may apply when booking through third-party services.

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During tarmac delays exceeding two hours, airlines must provide food and water. Passengers on domestic flights can deplane after three hours on the ground; for international flights, this threshold is four hours. Violations result in DOT fines rather than direct compensation to passengers.

The DOT’s air travel consumer rights dashboard continues to operate, outlining airline policies on issues like meal vouchers and accommodations during significant disruptions.

In December of the previous year, a proposal was introduced requiring airlines to compensate passengers with at least $200 for delays over three hours caused by factors within airline control. This proposal also aimed to formalize reimbursement policies for expenses such as meals and hotels during disruptions. However, this rule will not take effect after the Trump administration indicated plans to rescind it according to a public filing.

A spokesperson for the Department of Transportation stated last week: "Some of the rules proposed or adopted by the previous administration, however, went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements." The department affirmed its commitment to implementing all consumer protection policies mandated by Congress.

Airlines for America (A4A), representing several major U.S. carriers and cargo operators, submitted a request in May seeking withdrawal of multiple consumer protections. These include automatic refund rules during cancellations or major delays, pricing transparency regulations allowing consumers to see full ticket prices upfront, requirements around wheelchair handling and airport signage, as well as elimination of the DOT's consumer rights dashboard and monthly Air Travel Consumer Report data collection.

TPG relies on data from the Air Travel Consumer Report when compiling its annual Best Airlines Report analyzing performance metrics such as punctuality and baggage handling along with costs and amenities.

It remains unclear which regulatory rollbacks will occur. Airlines for America declined comment regarding their recent requests but stated: "We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don't solve issues important to our customers," adding support for working with the administration on deregulation efforts.

The decision not to implement new compensation rules brings attention back to traveler preparedness—including maintaining emergency funds for unexpected disruptions and considering credit cards with built-in travel insurance benefits that may cover costs related even when weather causes problems outside airline responsibility.

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