U.S. airlines start issuing automatic refunds

Airlines Refunds

The U.S. Department of Transportation’s new rule requiring airlines to automatically refund passengers for significantly delayed or canceled flights went into full effect on Monday. The rule aims to make air travel better for passengers, especially ahead of the busy holiday travel season in November and December. Under the new regulation, passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered by the airline.

Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally, departures or arrivals from a different airport, increases in the number of connections, instances where passengers are downgraded to a lower class of service, or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability. Passengers who file a mishandled baggage report will also be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.

Automatic refunds alter airline policies

Additionally, passengers will be entitled to a refund for the fee they paid for an extra service, such as Wi-Fi, seat selection, or inflight entertainment, if an airline fails to provide this service. The refunds must be automatically issued whether or not the passengers ask for one. They must also be issued within seven business days in cash or the original payment method like credit cards or airline miles.

Secretary Pete Buttigieg stated on Monday, “Passengers deserve to get their money back when an airline owes them—without headaches or haggling. Today, our automatic refund rule goes into full effect. Airlines are required to provide prompt cash refunds without passengers having to ask.”

The new rule is designed to alleviate the frustration and stress passengers often endure when dealing with flight disruptions, establishing a straightforward and automatic process for obtaining refunds.

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