US plans to make airlines refund fees if bags are delayed

The government does not know how often airlines keep fees even when bags are significantly delayed.The bag-fee proposal is the first of several airline-consumer regulations coming from the Biden administration, according to a senior Transportation Department official, who spoke on condition of anonymity to discuss a proposal that hasnt been made public.

The Transportation Department will propose that airlines be required to refund fees on checked baggage if the bags aren't delivered to passengers quickly enough.

The proposal, if made final after a lengthy regulation-writing process, would also require prompt refunds for fees on extras such as internet access if the airline fails to provide the service during the flight.

A department official said the agency will issue the proposal in the next several days, and it could take effect by next summer.

The proposal will require refunds if airlines fail to deliver a bag within 12 hours of the passenger's U.S. flight touching down or within 25 hours after an international flight. Current regulations require refunds only if bags are lost, although airlines must compensate passengers for "reasonable" incidental expenses incurred while their bags are delayed. The government does not know how often airlines keep fees even when bags are significantly delayed.

The bag-fee proposal is the first of several airline-consumer regulations coming from the Biden administration, according to a senior Transportation Department official, who spoke on condition of anonymity to discuss a proposal that hasn't been made public. Last year, more than 100,000 consumers complained to the government about airline service. Refunds were the biggest gripe, although most claimed airlines refused to give refunds to consumers who cancelled trips because of the pandemic. The Transportation Department is seeking a USD 25.5 million fine against Air Canada, but has not taken action against other carriers over refunds for cancelled flights.