Skift Take
The European Union’s rule gives a glimpse into how the U.S. may enforce its automatic refunds policy – though there are key differences.
When the Biden administration announced airlines would be required to automatically refund passengers for significantly delayed or canceled flights, the airline industry claimed there were unanswered questions.
Are airlines 100% responsible for refunds, even if a lengthy delay or cancellation is caused by an air-traffic control issue? What about the weather?
American Airlines CEO Robert Isom said the rule had some “gray” areas. Airlines for America, the largest trade group for major U.S. airlines, took a harsh stance and called the rule “anti-competitive.”
And now, automatic refunds are likely to become a part of U.S. law, after the Senate added a provision for them in its FAA reauthorization bill.
But the European Union passed something similar in 2004, and the rule went into effect i