U.S. airlines are now required to automatically refund passengers for significantly delayed or canceled flights, as the Department of Transportation’s new rule takes effect.
At a Glance
- Airlines must provide automatic refunds for significantly delayed or canceled flights
- Delays over 3 hours for domestic and 6 hours for international flights qualify for refunds
- Refunds must be processed within 7 days for credit card purchases, 20 days for other methods
- New rule aims to simplify the refund process and eliminate complex procedures
- Baggage fees and paid ancillary services are also subject to refunds if not delivered as promised
New Refund Rules for Air Travelers
The Department of Transportation (DOT) has implemented a new rule requiring U.S. airlines to automatically refund passengers for significantly delayed or canceled flights. This regulation, which became law in May as part of the FAA Reauthorization Act, aims to simplify what has often been a tedious refund request process for travelers.
Under the new guidelines, a “significant delay” is defined as more than three hours for domestic flights and six hours for international flights. Airlines must proactively offer refunds rather than vouchers or credits if passengers do not accept alternative flight options.
U.S. airlines are now required to refund passengers for a canceled flight https://t.co/u5FW9kVOut
— WSFA 12 News (@wsfa12news) October 29, 2024
Refund Process and Timeframes
The new rule mandates that refunds be issued via the original payment method, such as credit/debit card or airline miles. Airlines are required to process refunds expediently, within seven days for credit card transactions and within 20 days for other types of payments.
“Passengers deserve to get their money back when an airline owes them—without headaches or haggling.” – U.S. Transportation Secretary Pete Buttigieg
This regulation covers not only flight delays and cancellations but also extends to baggage fees and in-flight service deficiencies. Passengers are eligible for a refund of checked bag fees if their luggage is not delivered within 12 hours for domestic flights or 15-30 hours for international flights. Additionally, refunds are required for paid ancillary services not provided as promised, such as Wi-Fi or seat selection.
Comprehensive Coverage of Flight Changes
The DOT’s definition of a “significantly changed” flight is comprehensive, including changes in departure or arrival airports, increased connections, downgrades in service level, or less accessible airports or plane models for disabled passengers. Refunds are applicable for any cancellation or significant change in a flight, including weather-related cancellations.
“What automatic actually means in terms of timelines. Yes, they are held to that seven business days threshold,” said Katy Nastro with the Going travel app.
It’s important to note that passengers are only entitled to refunds if they do not accept alternative flights offered by the airline. If a refund is not received within seven business days, passengers should contact the airline or file a complaint with the DOT.
This new rule represents a significant step towards protecting consumer rights in air travel, ensuring that passengers receive fair treatment and timely refunds when their travel plans are disrupted. As the holiday travel season approaches, this regulation aims to provide peace of mind to travelers facing potential flight disruptions.
Sources:
- Airlines Must Now Refund Travelers for Canceled Flights—What To Know
- US airlines required to give automatic refunds for canceled, delayed flights
- New refund rule for air travelers is now in effect. Here’s what to know
