New regulations from the Biden administration will significantly tighten airline refund policies. The U.S. Department of Transportation (DOT) has mandated automatic refunds for passengers facing long delays, cancellations, or significant itinerary changes, without the need for requests. Refunds must be processed within seven to 20 days depending on the payment method. Additionally, airlines are required to more transparently disclose all ancillary fees such as baggage and change fees at the time of booking. These changes are part of a broader effort to enhance consumer protection in the aviation sector, promising to save travelers an estimated $500 million annually. The regulations are set to take effect by late October, with full implementation expected within the next year.
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