Bicameral legislation introduced to entitle consumers to cash refunds for flight, ticket cancellations

© Shutterstock

In response to recent airline flight cancellations, U.S. Reps. Steve Cohen (D-TN), Jesus “Chuy” Garcia (D-IL), and Jamie Raskin (D-MD) joined U.S. Sens. Edward Markey (D-MA), Richard Blumenthal (D-CT), Elizabeth Warren (D-MA) and Sheldon Whitehouse (D-RI) in introducing legislation to protect flying consumers.

The Cash Refunds for Flight Cancellations Act would provide consumers with a right to a full cash refund for flight or ticket cancellations. The bill codifies U.S. Department of Transportation rules that require major airlines to offer consumers a cash refund if an airline cancels or significantly delays a flight. The legislation also gives consumers with a new right to a cash refund if they cancel their flight up to 48 hours before a flight’s scheduled departure.

“Flight cancellations are happening all too frequently,” Cohen said. “My flight was canceled just last week. The flying public does not expect or want to get credits when the airlines are the cause of the cancellation, especially when they already benefited from a multibillion-dollar bailout from American taxpayers. Our bill remedies this situation and restores some needed consumer protections for air travelers.”

Flight cancellations and delays have increased over the past few months, leading to a growing number of consumer complaints. While federal law requires airlines to provide cash refunds when they cancel a flight, most airlines only offer passengers the opportunity to rebook the flight, or offer passengers a voucher for a future flight. The lawmakers said airlines routinely make customer jump through hoops to claim their rightful refund.

“Enough is enough: Travelers are sick of wasting their valuable time fighting the airlines to receive their legally-required cash refunds,” Markey said. “And they are tired of making flight reservations months in advance, only to face a health scare that forces them to choose between cancelling a nonrefundable flight, or traveling and risking the health of their fellow passengers. Just as hotels often allow consumers to cancel their reservation and receive a full refund, the Cash Refunds for Flight Cancellations Act would extend a similar requirement for air travel. These airlines must get their heads out of the clouds and deliver the effective and accountable service that travelers deserve.”

The legislation would require airlines or ticket agents to offer a full cash refund within 30 days if the flight is cancelled or significantly delayed. The airline would be able to offer a voucher only if it includes clear language that the flyer has a right to a cash refund. The legislation would also require the airline to let the passenger know prior to purchasing a ticket they have a right to a refund. The legislation will also authorize the Secretary of Transportation to impose a $1,000 penalty to an airline if it fails to provide a passenger with a full cash refund within 30 days.

The legislation is endorsed by the American Economic Liberties Project, the Consumer Federation of America, and the National Consumers League.