Frontier Airlines CEO Barry Biffle expressed concerns about the airline industry’s ability to comply with the latest Department of Transportation rules regarding refunds and junk fees. Biffle commented that the technology needed to meet the requirements may not currently be in place, but he hoped that progress could be made in reaching compliance. The rules mandate that airlines refund passengers for significantly delayed or canceled flights and disclose all “junk fees.” The industry has not fully embraced these new regulations, with trade group Airlines for America criticizing the DOT for creating rules without collaboration.
In response to the new rules, Frontier Airlines is revamping its website and app in an effort to address the issue of junk fees. The DOT’s rule on junk fees requires airlines to disclose all baggage, cancellation, and change fees, explain fee policies before ticket purchase, share fee information with third parties, and inform customers that seats are guaranteed. Additionally, airlines are prohibited from advertising promotional discounts on airfare without disclosing carrier-imposed fees. Biffle stated that he did not expect the rules to have a significant impact on Frontier’s bottom line, as the airline refunded over $300 million in the same categories last year and believes they are largely compliant with the regulations.
Frontier CEO Barry Biffle is not the only airline executive to express concerns about the enforceability of the new DOT rules. American Airlines CEO Robert Isom also noted during an analyst call that there were some gray areas in the automatic refund rule. Additionally, travel agents have stated that they do not currently have the necessary tools to fully comply with the regulations. Laura Chadwick, president and CEO of the Travel Technology Association, criticized the Department of Transportation for placing liability on airlines and ticket agents without providing the necessary tools for compliance. Despite these concerns, Transportation Secretary Pete Buttigieg has expressed confidence that the rules could withstand legal challenges.
Overall, there is confusion and skepticism within the travel industry regarding the new DOT rules on refunds and junk fees. While the rules aim to increase transparency and protect consumers, there are doubts about the industry’s current technological capabilities to comply with the regulations. Frontier Airlines and other carriers are taking steps to address the requirements, such as revamping their websites and apps. However, concerns remain about the potential impact on the industry’s bottom line and the ability of travel agents to fully comply. Despite the challenges, the DOT remains confident in the rules’ legal standing and their ability to benefit consumers.
