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U.S. DOT Reverses Policy: Airlines Can Now Cancel Mistake Fares with Reimbursement

Imagine Hawaii flights for $7, Europe tickets at $20 plus tax, or a $58 roundtrip to Belize. These legendary mistake fares appear briefly online before disappearing.

The thrill of snagging one is unmatched: Is this $250 roundtrip to Barcelona real? Can I book before the airline notices?

Often too good to be true, mistake fares stem from errors like data entry mistakes, misplaced decimals, or currency glitches in fare filing systems.

A dedicated community tracks them via forums, Twitter feeds, and tip-sharing networks, guided by the mantra: "Tell everyone but the airline." A single error can lead to thousands of ultra-cheap tickets sold.

Historically, U.S. Department of Transportation (DOT) rules barred airlines from raising prices post-purchase, obligating them to honor these fares.

That changed on May 8.

Under the new policy, airlines can cancel tickets bought at mistaken fares if they prove to the DOT the fare was filed in error. They must also refund the ticket price and reimburse reasonable, verifiable out-of-pocket expenses incurred in reliance on the booking, such as hotels, rental cars, or tours.

U.S. DOT Reverses Policy: Airlines Can Now Cancel Mistake Fares with Reimbursement

The tipping point? United's $51 first-class transatlantic fares this year, available via the Danish site in Krone. United canceled them, blaming a third-party software glitch and citing consumer "bad faith" since it targeted non-U.S. markets.

Will mistake fares vanish like free checked bags or coach meals?

Too early to say. Airlines may hesitate due to PR risks, cancellation logistics, and reimbursement costs for mass bookings. High-profile errors like $50 first-class likely get axed, while smaller discounts on $500 fares might stand.

If you book a suspect fare, save all receipts—post-purchase spending could strengthen your case. Still, it's risky; you might end up with a non-refundable Paris hotel but no flight.

Budget travelers, take heart. Real deals abound: unannounced sales, fare wars, flash promotions from JetBlue, Virgin America, Spirit, Emirates two-for-ones, and low-cost carriers. Follow @Travelzoo and @Fly_com for the latest flight steals and pounce on genuine bargains.


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