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With Hurricane Helene disrupting travel, here’s what fliers need to know

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Men inspect the damage from flooding in the aftermath of Hurricane Helene on Sept. 28, 2024 in Asheville, North Carolina.

Sean Rayford | Getty Images News | Getty Images

As the Southeast U.S. recovers in the aftermath of Hurricane Helene’s destruction, consumers looking to change their air travel plans to or from affected areas without taking a financial hit may be out of luck, experts said.

“The big-picture issue that happens in U.S. air travel: When there is a significant disruption, air passengers have very, very limited rights” when it comes to compensation, said Eric Napoli, chief legal officer at AirHelp, an online service that assists airline passengers.

‘Catastrophic damage’

Asheville Mayor on Helene damage: No neighborhood has been spared, entering a 'desperate' situation

The North Carolina Department of Transportation urged people to avoid unnecessary travel in the western part of the state due to hundreds of road closures from downed trees, landslides and “catastrophic damage.”

What airlines owe passengers

Amid that destruction, travelers hoping to change flights for free or cancel their plans for a refund may find airlines unwilling to grant that financially flexibility.

Airlines do generally owe “prompt” refunds to passengers if they cancel or make a “significant change” to a flight, regardless of the reason, according to the U.S. Department of Transportation. That’s true even for consumers with non-refundable tickets.

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However, weather-related events like Hurricane Helene are generally considered to be outside an airline’s control, meaning passengers have relatively few rights to compensation, experts said.

The airline’s duty in such cases generally depends on a passenger’s specific fare, such as economy or business class, Napoli said.

“There’s nothing [airlines] will do for you” if your conference was canceled and you don’t have a ticket that grants free cancellation or comes without fees for changes, he said.

Airlines make concessions in some cases

Damage to a store in Valdosta, Georgia, from Hurricane Helene.

Michael M. Santiago | Getty Images News | Getty Images

Some airlines are making concessions tied to Hurricane Helene, though they vary by carrier and geography.

“All the rules are different,” said Sally French, a travel expert at NerdWallet.

Many major U.S. carriers have dedicated webpages for travel alerts outlining their policies around specific events, she said.

For example, American Airlines, Delta Airlines and United Airlines have alerts about flooding in the Southeast. Many focus on areas around Asheville, North Carolina, and some parts of Georgia like the city of Valdosta.

United is waiving change fees and fare differences for passengers whose flight was affected by flooding and who choose to reschedule their flight, for example.

United’s policy comes with parameters: Passengers must have purchased their ticket before Sept. 26, for travel between Sept. 30 and Oct. 31, 2024; the new flight must be a United flight leaving by the end of 2024 and between the same cities as originally booked. Those who cancel can get a full refund.

American Airlines is also giving leeway to passengers scheduled to travel through Augusta, Georgia, between Sept. 29 and Oct. 4. They must book changes by Oct. 4.

Delta passengers scheduled to fly through Asheville or Valdosta must travel on rebooked flights by Oct. 18 to avoid paying a fare difference. Change fees would still be waived past that date, however.

Read the specifics of insurance policies

Travel insurance isn’t always a fail-safe in the event consumers can’t get reimbursed from the travel provider for a flight, hotel or other travel expenses, experts said.

If you didn’t purchase a cancel-for-any-reason policy, your trip problems typically have to fall under specific, covered reasons. Plus, policies bought after Helene became a named storm generally won’t cover claims related to it.

“Make sure you read the fine print and what the insurance is actually covering,” Napoli said.

Consumers who purchased their trip with a credit card may get certain travel reimbursement benefits from their card issuer, sometimes even in the case of severe weather, French said. Credit-card companies generally require a “quick turnaround” on a claim, often within 21 days, she said.

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Biggest banks planning to sue the Federal Reserve over annual stress tests

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A general view of the Federal Reserve Building in Washington, United States.

Samuel Corum | Anadolu Agency | Getty Images

The biggest banks are planning to sue the Federal Reserve over the annual bank stress tests, according to a person familiar with the matter. A lawsuit is expected this week and could come as soon as Tuesday morning, the person said.

The Fed’s stress test is an annual ritual that forces banks to maintain adequate cushions for bad loans and dictates the size of share repurchases and dividends.

After the market close on Monday, the Federal Reserve announced in a statement that it is looking to make changes to the bank stress tests and will be seeking public comment on what it calls “significant changes to improve the transparency of its bank stress tests and to reduce the volatility of resulting capital buffer requirements.”

The Fed said it made the determination to change the tests because of “the evolving legal landscape,” pointing to changes in administrative laws in recent years. It didn’t outline any specific changes to the framework of the annual stress tests.

While the big banks will likely view the changes as a win, it may be too little too late.

Also, the changes may not go far enough to satisfy the banks’ concerns about onerous capital requirements. “These proposed changes are not designed to materially affect overall capital requirements, according to the Fed.

The CEO of BPI (Bank Policy Institute), Greg Baer, which represents big banks like JPMorgan, Citigroup and Goldman Sachs, welcomed the Fed announcement, saying in a statement “The Board’s announcement today is a first step towards transparency and accountability.”

However, Baer also hinted at further action: “We are reviewing it closely and considering additional options to ensure timely reforms that are both good law and good policy.”

Groups like the BPI and the American Bankers Association have raised concerns about the stress test process in the past, claiming that it is opaque, and has resulted in higher capital rules that hurt bank lending and economic growth.

In July, the groups accused the Fed of being in violation of the Administrative Procedure Act, because it didn’t seek public comment on its stress scenarios and kept supervisory models secret.

CNBC’s Hugh Son contributed to this report.

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