ASTA Applauds Congressional Letter Urging DOT to Revise Burdensome Airline Refund Rule

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Alexandria, VA, July 14, 2025 The American Society of Travel Advisors (ASTA) expressed strong support today for a bipartisan letter from nine U.S. House Representatives calling on the Department of Transportation (DOT) to address a 2024 regulation that unfairly shifts the financial burden of airline ticket refunds onto travel agencies rather than the airlines themselves.

The letter, sent last week and led by Rep. Beth Van Duyne (R-TX), was addressed to DOT Secretary Sean Duffy. It criticizes the rule, which took effect on October 29, 2024, for requiring the "merchant of record" (often travel advisors) to issue refunds to consumers within seven days for canceled or significantly delayed flights. While a recent update mandates that airlines reimburse advisors "promptly," it lacks a specific timeline, leaving small businesses vulnerable to cash flow issues.

"Requiring small business travel advisors to extend credit from their own pockets to pay airline refunds is a gross misplacement of responsibility that must be rectified," said ASTA President and CEO Zane Kerby in a statement. "I applaud these Members of Congress for recognizing this inequity and taking our plight to new leadership at the DOT. Fixing this misguided rule remains ASTA’s top policy priority, and the support of Congress will go a long way toward that goal."

The congressional letter echoes these concerns, noting that travel advisors and agencies "often operate on slim margins and the rule requires them to front capital they often do not have without first receiving the funds from the airlines." It further argues that the DOT's assumption that market forces would resolve these issues ignores historical precedents, stating, "our constituents convey that all history points to the contrary, and the financial burden placed on these businesses is not sustainable."

Signatories to the July 10 letter include Reps. Mike Bost (R-IL), Scott DesJarlais, M.D. (R-TN), French Hill (R-AR), Kimberlyn King-Hinds (R-CNMI), Rich McCormick, M.D., MBA (R-GA), María Elvira Salazar (R-FL), Pete Stauber (R-MN), and Daniel Webster (R-FL), alongside Van Duyne.

ASTA has been vocal in its opposition to the rule since its implementation, viewing the post-November 2024 election change in DOT leadership as a fresh opportunity for reform. The association has also advocated for the Flight Refund Fairness Act (H.R. 9552), which aims to exempt small business ticket agents from the refund requirement for disrupted flights.

"ASTA will not allow small travel agencies to serve as banks for the big airlines," Kerby added. "This is about fairness and ensuring that the parties responsible for service failures (the airlines) are also responsible for the refunds. Our members are being saddled with financial obligations they neither caused nor can afford, and we are grateful to our champions in Congress for stepping in."

The organization emphasized that the absence of a defined reimbursement timeline exposes travel agencies to unnecessary risk, potentially undermining industry stability and consumer trust. "The Department’s assumption that the market will resolve these issues is detached from the reality our members face every day," Kerby said. "If policymakers are serious about supporting small businesses, they must act swiftly to revise this rule. Until then, ASTA will continue to advocate relentlessly for a regulatory fix."

ASTA plans to maintain pressure through direct DOT engagement, collaboration with congressional allies, and member mobilization to push for both administrative and legislative solutions.

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