ARLINGTON, Virginia April 24 (Reuters) – The U.S. Transportation Department finalized new rules Wednesday requiring upfront disclosure of airline fees and mandates quick cash refunds for canceled flights, as well as for delayed baggage or inoperative services like onboard Wi-Fi.
The rules, which were nearly three years in the works, will require airlines and ticket agents to tell consumers upfront about baggage or change and cancellation fees. The department said consumers are expected to save $543 million annually in excess airline fees.
President Joe Biden has repeatedly heaped criticism on the airline industry over the last two years.
“Too often, airlines drag their feet on refunds or rip folks off with junk fees,” Biden said Wednesday, arguing the new mandate will ensure “automatic refunds to passengers when they’re owed, and protect them from surprise fees.”
The new rules require airlines and ticket agents to disclose extra service fees alongside the full fare, the first time fare and schedule information is displayed online.