Airlines Could Soon Be Forced to Refund Fees on Bags that are ‘Significantly Delayed’

A new proposal from the White House could soon see passengers get a refund on their baggage fees if they are significantly delayed.

The Biden administration on Tuesday confirmed that it was planning to institute a rule that would give passengers the ability to get a refund on ancillary services, including baggage fees and spotty onboard WiFi, should they be significantly impaired or delayed during their travel.

White House National Economic Council Director Brian Deese confirmed the plan on Tuesday and called it “part of a broader effort…around driving greater competition in the economy in services of lower prices.”

Under the proposal, bags that aren’t delivered within 12 hours of a domestic flight’s arrival, and 25 hours of an international flight’s arrival, would see airlines refund passengers their baggage fees. Right now, airlines are only required to refund bag fees when a bag is lost, though some airlines do provide compensation for bags that are significantly delayed.  

According to reports, the new rule would be proposed in the coming days and could take effect by summer 2022.

United Airlines, Delta Air Lines, American Airlines, and others all raised the price of a first checked bag by $5 in late 2018, while also increasing the fees for a second checked bag. The results appear to speak for themselves as baggage fees continue to grow to be a significant source of revenue for U.S. airlines, which combined collected a total of $5.1 billion in charges over the past year, a record high for the airline industry.

American Airlines brought in $1.24 billion in baggage fees in 2018, the highest among the U.S. carriers. United was second-highest with a total of $933.3 million, with Delta coming in third at $817.1 million collected.