What This Bill Does
This bill requires airlines and ticket agents to give passengers cash refunds when flights are canceled or significantly delayed. The bill also allows passengers to cancel their tickets at least 48 hours before departure and receive a full cash refund. Airlines can offer alternative compensation like credits or vouchers instead, but must inform passengers they have the right to cash refunds.
Who It Affects
Passengers who buy airline tickets for flights in the United States. Large airlines with operating revenue exceeding $1.5 billion in 2018. Foreign airlines operating flights to or from the United States. Ticket agents who sell airline tickets.
Key Provisions
• Airlines and ticket agents must offer a full cash refund within 30 days when a flight is canceled or significantly delayed by the airline, or when a passenger cancels at least 48 hours before departure. The refund includes all ancillary fees (extra charges) paid. (Sec. 41727(a)(1)(A))
• Airlines and ticket agents must limit cash refunds to one flight per passenger on any city-pair route on any given date. (Sec. 41727(a)(1)(B))
• Airlines and ticket agents can offer alternative compensation like credits or vouchers instead of cash refunds, but must clearly notify passengers of their right to receive cash. Any alternative compensation must remain valid and redeemable indefinitely with no expiration date. (Sec. 41727(a)(2))
• Passengers who received alternative compensation between March 1, 2020 and the date this law takes effect can request cash refunds to replace unused portions of that compensation. Airlines must comply within 30 days. (Sec. 41727(a)(3))
• Airlines and ticket agents must disclose in writing before ticket purchase that passengers can cancel for any reason and receive a full cash refund. When flights are canceled or significantly delayed, they must disclose in writing that passengers have the right to a cash refund. (Sec. 41727(c))
What Changes
Airlines and ticket agents become legally required to offer cash refunds for canceled or significantly delayed flights and for passenger-initiated cancellations made 48 hours before departure. Airlines can use certain federal funding appropriated for the commercial airline industry to pay for these refunds, with one exception. Airlines that violate these requirements face civil penalties.
Important Definitions
Covered carrier: Any passenger airline that had operating revenue exceeding $1.5 billion in 2018, or any foreign airline operating flights to or from the United States. Covered flight: A flight of a covered airline scheduled to depart from or arrive at an airport in the United States.
Effective Date
The law takes effect on the date it is enacted.
II
118TH CONGRESS
1ST SESSION
S. 561
To provide for cash refunds for canceled airline flights and tickets.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 28, 2023
Mr. MARKEY (for himself, Mr. BLUMENTHAL, Mr. SANDERS, Mr. SCHATZ,
Ms. WARREN, Mr. WELCH, Mr. WHITEHOUSE, and Mr. WYDEN) intro-
duced the following bill; which was read twice and referred to the Com-
mittee on Commerce, Science, and Transportation
A BILL
To provide for cash refunds for canceled airline flights and
tickets.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Cash Refunds for
4
Flight Cancellations Act of 2023’’.
5
SEC. 2. CASH REFUNDS FOR CANCELED AIRLINE FLIGHTS
6
AND TICKETS.
7
(a) IN GENERAL.—Chapter 417 of title 49, United
8
States Code, is amended by adding at the end the fol-
9
lowing:
10
VerDate Sep 11 2014
05:07 Mar 08, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S561.IS
S561
SSpencer on DSK126QN23PROD with BILLS
2
•S 561 IS
‘‘SEC. 41727. CASH REFUNDS FOR CANCELED AIRLINE
1
FLIGHTS AND TICKETS.
2
‘‘(a) CASH REFUNDS.—
3
‘‘(1) REQUIREMENT.—
4
‘‘(A) IN
GENERAL.—Subject to subpara-
5
graph (B), a covered carrier or ticket agent who
6
sells a ticket for a passenger to take a covered
7
flight, and either such flight is canceled or sig-
8
nificantly delayed (as defined by the Secretary
9
of Transportation) by the covered carrier or
10
such ticket is canceled by the passenger at least
11
48 hours before the scheduled departure of the
12
flight, shall offer the passenger a full cash re-
13
fund for such ticket, including any ancillary
14
fees paid, within 30 days of the passenger mak-
15
ing the request.
16
‘‘(B) LIMITATION.—A covered carrier or
17
ticket agent shall only be required to offer a
18
cash refund under subparagraph (A) for 1
19
flight booked by a passenger on any city-pair
20
itinerary on any given date.
21
‘‘(2) ALTERNATIVE FORM OF COMPENSATION.—
22
‘‘(A) IN GENERAL.—A covered carrier or
23
ticket agent may offer an alternative form of
24
compensation determined appropriate by the
25
covered carrier or ticket agent, including a
26
VerDate Sep 11 2014
05:01 Mar 08, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S561.IS
S561
SSpencer on DSK126QN23PROD with BILLS
3
•S 561 IS
credit, a voucher, or other mechanism to com-
1
pensate a passenger, provided that any such
2
offer includes a clear and conspicuous notice of
3
a passenger’s right to a cash refund under
4
paragraph (1).
5
‘‘(B) NO
EXPIRATION
DATE.—An alter-
6
native form of compensation provided pursuant
7
to subparagraph (A) shall remain valid and re-
8
deemable by the passenger indefinitely.
9
‘‘(3) RETROACTIVE REFUNDS.—In the case of a
10
passenger who—
11
‘‘(A) received an alternative form of com-
12
pensation during the period beginning on
13
March 1, 2020, and ending on the day prior to
14
the date of enactment of this Act for a covered
15
flight or ticket for a covered flight canceled by
16
the covered carrier or by the passenger; and
17
‘‘(B) has not fully used such alternative
18
compensation,
19
such passenger may request a cash refund to replace
20
the alternative compensation, or the remaining alter-
21
native compensation if the passenger has used part
22
of the alternative compensation, and the covered car-
23
rier or ticket agent shall comply with such request
24
within 30 days of receiving such request.
25
VerDate Sep 11 2014
05:01 Mar 08, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S561.IS
S561
SSpencer on DSK126QN23PROD with BILLS
4
•S 561 IS
‘‘(4) REIMBURSEMENT TO TICKET AGENT.—A
1
ticket agent who provides a cash refund to a pas-
2
senger under this section, including a retroactive re-
3
fund under paragraph (3), shall be entitled to
4
prompt reimbursement from any covered carrier for
5
the portion of the ticket price paid to that carrier.
6
‘‘(b) FUNDING.—
7
‘‘(1) IN GENERAL.—Subject to paragraph (2), a
8
covered carrier or ticket agent may use amounts ap-
9
propriated or otherwise made available to the com-
10
mercial airline industry in any appropriations en-
11
acted on or after March 1, 2020, in response to
12
COVID–19 to pay for the cash refunds under sub-
13
section (a), including retroactive refunds under para-
14
graph (3) of such subsection.
15
‘‘(2) LIMITATION.—A covered carrier may not
16
use amounts appropriated under section 4112 of the
17
Coronavirus Economic Stabilization Act of 2020
18
(title IV of division A of the Coronavirus Aid, Relief,
19
and Economic Security Act (Public Law 116–136))
20
to pay for the cash refunds under subsection (a), in-
21
cluding retroactive refunds under paragraph (3) of
22
such subsection.
23
‘‘(c) DISCLOSURE.—
24
VerDate Sep 11 2014
05:01 Mar 08, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\S561.IS
S561
SSpencer on DSK126QN23PROD with BILLS
5
•S 561 IS
‘‘(1) PRIOR TO PURCHASE.—Prior to the sale of
1
a ticket for passenger to take a covered flight, a cov-
2
ered carrier or ticket agent shall disclose, in writing
3
in written or electronic communication, that the pas-
4
senger has a right to cancel their ticket at any time
5
for any reason and receive a full cash refund.
6
‘‘(2) CANCELLED OR SIGNIFICANTLY DELAYED
7
FLIGHT.—In the case of a covered carrier or ticket
8
agent who sells a ticket for a passenger to take a
9
covered flight, if such flight is canceled or signifi-
10
cantly delayed (as defined by the Secretary of
11
Transportation) by the covered carrier or such ticket
12
is canceled by the passenger at least 48 hours before
13
the scheduled departure of the flight, the covered
14
carrier or ticket agent shall disclose, in writing in
15
written or electronic communication, that the pas-
16
senger has a right to receive a full cash refund for
17
their ticket.
18
‘‘(3) REQUIREMENTS
FOR
DISCLOSURE.—Any
19
written or electronic disclosure under paragraph (1)
20
or (2) shall be in a clear and conspicuous format.
21
‘‘(d) DEFINITIONS.—In this section:
22
‘‘(1) AIR
CARRIER, FOREIGN
AIR
CARRIER,
23
TICKET AGENT, AND UNITED STATES.—The terms
24
‘air carrier, foreign air carrier, ticket agent, and
25
VerDate Sep 11 2014
05:01 Mar 08, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\S561.IS
S561
SSpencer on DSK126QN23PROD with BILLS
6
•S 561 IS
United States’ have the meanings given those terms
1
in section 40102.
2
‘‘(2) COVERED
CARRIER.—The term ‘covered
3
carrier’ means—
4
‘‘(A) any passenger air carrier that had an
5
operating revenue in 2018 that exceeded
6
$1,500,000,000 according to the Bureau of
7
Transportation Statistics; or
8
‘‘(B) any passenger foreign air carrier op-
9
erating a flight to or from the United States.
10
‘‘(3) COVERED
FLIGHT.—The term ‘covered
11
flight’ means a flight of a covered carrier that is
12
scheduled to depart from, or arrive at, an airport lo-
13
cated in the United States.’’.
14
(b) ENFORCEMENT.—Section 46301 of title 49,
15
United States Code, is amended by adding at the end the
16
following new subsection:
17
‘‘(j) PENALTIES RELATING TO CASH REFUNDS FOR
18
CANCELED AIRLINE FLIGHTS AND TICKETS.—An air car-
19
rier or ticket agent that violates section 41727 shall be
20
liable to the Government for a civil penalty of $1,000 for
21
each violation.’’.
22
(c) CLERICAL AMENDMENT.—The analysis for chap-
23
ter 417 of title 49, United States Code, is amended by
24
adding at the end the following:
25
‘‘41727. Cash refunds for canceled airline flights and tickets.’’.
VerDate Sep 11 2014
05:01 Mar 08, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6211
E:\BILLS\S561.IS
S561
SSpencer on DSK126QN23PROD with BILLS
7
•S 561 IS
(d) EFFECTIVE DATE.—The amendments made by
1
this section shall take effect on the date of the enactment
2
of this Act.
3
Æ
VerDate Sep 11 2014
05:01 Mar 08, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\S561.IS
S561
SSpencer on DSK126QN23PROD with BILLS