Mass cancellations, flight delays and poor refund practices are putting airlines squarely in sight of US lawmakers. One of the most vocal and influential of those is US Transportation Secretary Pete Buttigieg, who is taking action "to make sure that consumers and passengers are protected."

DOT says to give them their money back

Yesterday, Reuters reported that the US government had completed ten airline investigations into delayed or withheld passenger refunds during the COVID-19 pandemic. A US Transportation (DOT) department official told Reuters that the department would take enforcement action in the coming weeks. Separately, Buttigieg told Fox News Sunday the passenger refund probes were complete and that ten additional airline probes remain ongoing. He added,

"We'll collaborate with airlines when they're ready to take steps that are positive and proactive, whether that's improvements in pay that are helping with hiring or flexibility in customer service," Buttigieg told Fox News Sunday. "We're also going to enforce passenger and consumer rights."

In June 2012, the DOT announced it was seeking a $25.5 million fine against Air Canada over its failure to provide timely refunds, in violation of US law. Air Canada agreed to a $4.5 million settlement in November to resolve the issue.

While neither the DOT nor Buttigieg identified which airlines were being probed, he said they were "failing to provide refunds to passengers after they got stuck with cancellations." One of Buttigieg's objections is when airlines offer points rather than refunds for canceled flights and the disparity between the cost of the flight and the value of the points.

In June, Buttigieg met with airline bosses to talk about summer flight schedules and the spate of flight cancelations. In those discussions, the airlines highlighted air traffic control staffing issues at the Federal Aviation Administration (FAA) as a contributing factor. Given that the FAA is part of the DOT, the government agency Buttigieg is responsible for, it seems he might have his own issues to attend to a little closer to home.

More rules are on the way if Airlines don't lift their game

The DOT was also busy on Friday, with Reuters reporting it had warned airlines against charging extra fees to allow young children to sit next to accompanying family members. The DOT issued a notice urging airlines to ensure children age 13 or younger are seated next to an accompanying adult with no additional charge. Industry body, Airlines for America, a group representing Delta Air Lines, United Airlines, American Airlines and others, said,

"US airlines have always worked to accommodate customers traveling together, especially those traveling with children, and will continue to do so."

In a sign of more regulatory oversight for airlines, DOT plans to issue rules that fees for baggage, flight cancellation and family seating are clearly disclosed at the time of purchase. It also will issue final rules requiring passenger airlines to refund fees for significantly delayed bags and refunds for services, such as onboard WiFi, that do not work. The department also said that by August, it would propose formal rules codifying requirements for airlines to provide prompt refunds when carriers cancel or make a significant change, including when tickets purchased are non-refundable.

Will the threat of a bigger regulatory stick be enough of a carrot for airlines to start treating customers better?