ASTA Supports New Legislation Shifting Airline Refund Burden Away from Travel Agencies

Published on October 3, 2025

In September 2025 ASTA Supports New Legislation a new bill is set to change airline refund responsibility in the US Representative Maria Salazar from Florida has proposed the Flight Refund Fairness Act. Salazar’s bill ensures the responsibility of refunding passengers for canceled or significantly changed flights rests solely on the airlines and not the travel agencies.

This proposal directly addresses a long-overdue problem in the industry where travel agencies could be financially responsible for refunds even in cases where there was no money available. Though not universally applicable to travel agencies, it posed severe risks to those dealing in bulk group bookings or acting as ticketing agents.

Protection for Small Travel Agencies

The American Society of Travel Advisors (ASTA) has strongly supported the bill, highlighting its importance for protecting small and medium-sized agencies. According to U.S. government data, more than 95 percent of travel agencies in the country operate as small businesses. Many of these agencies face thin margins, and the current refund rules expose them to unnecessary financial burdens.

By requiring airlines to return funds within seven days, the legislation brings refund procedures in line with existing consumer protection rules. This measure ensures travelers receive timely compensation directly from airlines while agencies remain shielded from undue responsibility.

Bipartisan Backing on Capitol Hill

The proposed law enjoys bipartisan support, reflecting its widespread recognition as a matter of fairness. Lawmakers across party lines have acknowledged that agencies act primarily as intermediaries, not as holders of passenger funds. The reintroduction of this bill comes ahead of ASTA’s Legislative Day, when advisors gather in Washington, D.C., to meet policymakers and advocate for reforms that protect both businesses and travelers.

For agencies, this marks a significant step toward leveling the regulatory landscape. For travelers, it promises faster and more reliable access to refunds in the event of disruptions.

Implications for Consumers

Under the new rules, airlines must return ticket funds directly to agencies within seven days. This ensures that refunds can flow quickly to customers without additional disputes or delays. The measure also prevents travelers from being caught between airlines and agencies during refund disputes.

For group travelers and those booking through smaller agencies, the changes mean greater financial clarity and stronger consumer protection. Refunds will no longer be tied to the financial ability of agencies but instead guaranteed through direct airline responsibility.

Industry Impact and Next Steps

ASTA has identified the Flight Refund Fairness Act as its top policy priority. The association has outlined the law’s importance in ensuring that U.S. travel agencies can continue to operate sustainably without being burdened by refund obligations beyond their control.

As the bill moves through Congress, the travel industry will closely monitor its progress. Should it pass, both agencies and travelers will gain clearer, more transparent protections when dealing with flight cancellations or major service changes.

Guide for Travelers

Travelers should be aware of how the proposed law benefits them:

• Refunds from airlines only – Consumers will no longer depend on agencies for refund payouts.
• Seven-day refund guarantee – Airlines must issue funds within a week for eligible cases.
• Simplified process – Passengers will not face disputes between airlines and agencies.
• Stronger consumer rights – Refund access becomes more reliable, transparent, and timely.

For anyone booking flights through agencies, especially in group travel, this legislation provides added assurance that airlines remain fully accountable for refund obligations.

Final Outlook

A new bill reintroduced in September 2025 is set to redefine airline refund responsibility in the United States. The Flight Refund Fairness Act, introduced by Representative Maria Salazar of Florida, ensures that airlines, not travel agencies, carry the obligation of refunding passengers for canceled or significantly changed flights.

This legislation directly addresses a long-standing issue in the industry, where travel agencies could be held financially liable for refunds even when they did not have the funds. While this did not affect all agencies, it placed significant risks on those managing bulk group bookings or acting as ticketing agents.

Protection for Small Travel Agencies

The American Society of Travel Advisors (ASTA) has strongly supported the bill, highlighting its importance for protecting small and medium-sized agencies. According to U.S. government data, more than 95 percent of travel agencies in the country operate as small businesses. Many of these agencies face thin margins, and the current refund rules expose them to unnecessary financial burdens.

By requiring airlines to return funds within seven days, the legislation brings refund procedures in line with existing consumer protection rules. This measure ensures travelers receive timely compensation directly from airlines while agencies remain shielded from undue responsibility.

Bipartisan Backing on Capitol Hill

The proposed law enjoys bipartisan support, reflecting its widespread recognition as a matter of fairness. Lawmakers across party lines have acknowledged that agencies act primarily as intermediaries, not as holders of passenger funds. The reintroduction of this bill comes ahead of ASTA’s Legislative Day, when advisors gather in Washington, D.C., to meet policymakers and advocate for reforms that protect both businesses and travelers.

For agencies, this marks a significant step toward leveling the regulatory landscape. For travelers, it promises faster and more reliable access to refunds in the event of disruptions.

Implications for Consumers

Under the new rules, airlines must return ticket funds directly to agencies within seven days. This ensures that refunds can flow quickly to customers without additional disputes or delays. The measure also prevents travelers from being caught between airlines and agencies during refund disputes.

For group travelers and those booking through smaller agencies, the changes mean greater financial clarity and stronger consumer protection. Refunds will no longer be tied to the financial ability of agencies but instead guaranteed through direct airline responsibility.

Industry Impact and Next Steps

ASTA has identified the Flight Refund Fairness Act as its top policy priority. The association has outlined the law’s importance in ensuring that U.S. travel agencies can continue to operate sustainably without being burdened by refund obligations beyond their control.

As the bill moves through Congress, the travel industry will closely monitor its progress. Should it pass, both agencies and travelers will gain clearer, more transparent protections when dealing with flight cancellations or major service changes.

Guide for Travelers

Travelers should be aware of how the proposed law benefits them:

• Refunds from airlines only – Consumers will no longer depend on agencies for refund payouts.
• Seven-day refund guarantee – Airlines must issue funds within a week for eligible cases.
• Simplified process – Passengers will not face disputes between airlines and agencies.
• Stronger consumer rights – Refund access becomes more reliable, transparent, and timely.

For anyone booking flights through agencies, especially in group travel, this legislation provides added assurance that airlines remain fully accountable for refund obligations.

Final Outlook

With bipartisan support and ASTA’s strong backing, the reintroduction of the Flight Refund Fairness Act could be the most important change we make to travel regulation. It recognizes and addresses the needs of both travelers and travel agencies by assuming the United States travel system is based on fairness and simplicity; refund requests of the travelers will be the responsibility of the airlines.