New rules regarding U.S. airline fees and refunds are making waves in the travel industry. Here's what you need to know:

In the air and on the ground, travelers are talking about the U.S. Department of Transportation's new rules regarding airline refund obligations and the agency's fight against junk fees.

On Wednesday, Transportation Secretary Pete Buttigieg announced two new rules that will help many travelers when purchasing airline tickets and when their flights are canceled or delayed.

The first rule mandates automatic cash refunds if a flight is canceled or significantly delayed by more than three hours. Travelers also have the option of accepting alternative transportation or air credit offers from airlines.

Refund rules also apply to baggage fees if checked baggage is not returned within 12 hours. Additionally, airlines must refund passengers who paid for Wi-Fi, seat selection, and in-flight entertainment if the service is not provided.

Another key element of the refund rules is allowing travelers to cancel their flights if they are advised by a medical professional not to travel due to a serious communicable disease (such as COVID-19) It's a clause. In such cases, the airline can issue a travel credit, but it is transferable and must be valid for five years.

The second rule requires airlines to prominently disclose all mandatory fees at the time the fare is first displayed. The rule also requires airlines to disclose fees for carry-on bags, first or second checked bags, or fees for changing or canceling a reservation.

“As part of the rulemaking process, DOT determined that additional action is necessary because surcharges have become more complex over time and continue to confuse riders,” according to a statement announcing the new rule. There is.

The first rule on refunds is an attack on the practice of airlines only offering travel credits or vouchers when flights are cancelled. In many cases, these credits are not transferable, even if the traveler did not pay for the ticket. Also, the credit is only valid for one year. If credit is unavailable, the airline will keep the money.

The second rule concerns unexpected junk fees and is part of the Biden administration's war on such fees. Although not included in this new rule, the DOT plans to issue additional rules that will prohibit airlines from charging additional fees just for having a family member present. But this week's rules include a provision that airlines must notify travelers that they don't need to buy seats. If you purchase your ticket without paying extra for seat selection, your seat will be assigned to you at check-in.

It's not written in the rules, but frequent travelers know this. Your seat will probably be in the back of the plane, in the middle, next to the toilet. But hey, it's the seats.

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Rules regarding cheapest seats on airline tickets, especially low-cost flights, change all the time. Most recently, Alaska Airlines started crediting just 30% of the miles flown to your mileage if you purchase a Saver ticket. Delta does not award any miles to basic economy travelers.

These new rules are primarily intended to help infrequent travelers who may not be familiar with all of the surcharges and surcharges currently offered by airlines.

“These rules are long outdated,” said travel consumer advocate Christopher Elliott. “These rules will help you a lot.”

Elliott has fielded thousands of complaints from airlines, including one case where it took four years to receive a refund.

Airlines are regulated at the federal level, and one common regulation is the 24-hour rule. This means that once you book and pay, you can change your mind and cancel within 24 hours without penalty.

Well, travel writer John DiScala (aka “Johnny Jett”) took advantage of this clause when booking a trip to see family in Canada. After booking the trip for his family, he and his wife discussed their plans. That night he returned to cancel. However, Air Canada did not receive the memo and sought to keep some of the funds. DiScala wrote about the struggle to get the money back, even with bookkeeping rules.

Meanwhile, airlines have remained silent about the new rules, following the lobbying group Airlines for America. Airlines for America members include Alaska Airlines, Delta Air Lines, American Airlines, United Airlines, and more.

At a Department of Transportation hearing last year, Doug Mullen, deputy general counsel for Airlines for America, blasted the proposed rule. “Few, if any, people need or want this information, especially those who are first trying to understand schedule and fare options,” Mullen said. Mullen also suggested that the rule would only cause “confusion and frustration.”

It is no exaggeration to conclude that the airlines themselves have contributed to the “confusion and dissatisfaction” that Mullen warns of, with prices continuing to rise at every turn.

The new rule, which goes into effect within 60 days, applies to all airlines flying to, from, or within the United States, including Condor Airlines, Discover Airlines, Air Canada, Sun Country, and other airlines that serve the United States during the summer. Applies to the company.

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The rule also applies to airlines operating within Alaska, many of which are limited to nine seats per flight under the FAA's Rule 135.

Grant Aviation operates a Cessna 208 Grand Caravan aircraft between Kenai and Anchorage. Many of the provisions of the new rules do not apply to him.

“We let passengers carry 100 pounds of luggage for free,” said Rob Kelly, president of the company.

“We never want to lose that personal touch and we bend over backwards for our customers,” he said.

This includes offering new flights and refunds in the event of cancellations or delays.

“There's nothing wrong with the motivation behind the rule,” said Kent Crafford, president of Alaska Seaplanes in Juneau. “But we are not press ready. We are not American Airlines. It will take time to find a software developer who can make the changes so we can be compliant.”

“Most of the smaller airlines in Alaska are already doing this,” said Matt Atkinson of Wright Air Service in Fairbanks. “If someone wants a refund, that's fine with us. But the new rules don't seem to be relevant to our operations.”

The DOT's new rules apply only to flights that were delayed or canceled by the airline.

Airlines aren't the only companies with junk fees and questionable business practices. However, the DOT can regulate airlines. We can't regulate rental car companies and hotels that keep racking up junk fees. The Federal Trade Commission claims oversight over these categories.

“There's still a lot of work to do, and it cuts across multiple industries,” said Christopher Elliott.