The U.S Department of Transportation Secretary, Pete Buttigieg, recently issued a warning to airlines regarding their compliance with refund requirements outlined in the FAA Reauthorization Act. In a letter addressed to the CEOs of the ten largest U.S. airlines, Buttigieg expressed concerns over the thousands of customer complaints received by the DOT in recent weeks. The main issue at hand seems to be the lack of transparency from airlines regarding passengers’ entitlement to refunds. It appears that some airlines may not be adequately disclosing this information or, even worse, misleading travelers into thinking that they are not eligible for a refund.
The CrowdStrike IT outage on July 19 significantly impacted the airline industry, resulting in a staggering 3,400 U.S. flight cancellations on that day alone. This outage also led to over 13,000 delays, causing widespread chaos for travelers. Subsequently, airlines were forced to cancel an additional 4,200 U.S. flights on July 20 and July 21, with Delta and United facing the brunt of the disruptions. The cancellations continued to persist at high levels until July 24, with Delta and its subsidiary, Endeavor Air, cancelling over 6,300 flights over a six-day period.
According to the new FAA law, refunds are now the default option for any customer whose flight is cancelled or significantly delayed, unless they opt for an alternative such as rebooking, a voucher, or flight credit. Airlines are obligated to proactively inform customers of their right to a refund, particularly in cases of significant delays that exceed three hours for domestic flights and six hours for international flights. Buttigieg reiterated that airlines cannot automatically issue vouchers or flight credits without clearly offering passengers the choice of a refund. Additionally, if a passenger chooses a voucher due to a cancellation or significant delay, the voucher must remain valid for a minimum of five years.
It is important for airlines to adhere to the refund requirements stipulated in the FAA Reauthorization Act to ensure transparency and fairness for passengers. Buttigieg’s letter serves as a stern reminder to airlines, emphasizing the need for clear communication with customers regarding their right to a refund. The ten primary U.S. airlines, including Alaska, Allegiant, American, Delta, Frontier, Hawaiian, JetBlue, Southwest, Spirit, and United, must take proactive measures to comply with these regulations and prioritize the best interests of their passengers. Failure to do so may result in further regulatory action and increased scrutiny from the Department of Transportation.