Airlines increasing customer refunds for lost bags, bumped flights

Airline companies now are required to refund baggage fees if a customer’s bag is lost in transit, and double the reimbursement for customers who have been bumped from a flight.

On August 23, Department of Transportation enacted numerous consumer protection regulations that it finalized earlier this year.

Airlines now must provide customers who were bumped from an oversold flight double the price of a one-way ticket up to $650. Customers who experience long delays can receive compensation of up to $1,300. The compensation cap will be adjusted for inflation every 2 years.

Under the new regulations, airlines also are required to display all additional fees prominently on their websites. This includes fees for additional baggage, flight changes and cancellations.

DOT also is expanding its current ban on tarmac delays to a 4-hour limit to include international flights. Airlines also are required to provide passengers with food and beverages if passengers have been stuck on a tarmac for longer than 2 hours.

In early 2012, additional regulations will take effect that will require airlines to disclose all taxes and fees in advertised prices and to notify passengers of delays that exceed 30 minutes.