Major U.S. airlines have filed a lawsuit against the Department of Transportation’s “junk fees” rule, arguing that it the rule is a regulatory overreach that would create more confusion for consumers.
Federal agencies are currently investigating whether airlines have devalued frequent flyer miles to make it more difficult for consumers to redeem award tickets.
The Senate Commerce Committee added a provision that would let customers receive automatic refunds whenever flights are significantly delayed or canceled.
One line buried in the new bipartisan FAA reauthorization bill makes it unclear if the Biden administration can enforce automatic refunds for airlines.
Skift has learned that any significant delay or cancellation, regardless of the reason, qualifies for an automatic refund as part of the Department of Transportation’s new consumer protection rules for the airline industry.
American CEO Robert Isom is one of the first top executives in the U.S. airline industry to voice some concerns over the Department of Transportation’s latest rule.