Travelers Will Soon Receive Automatic Refunds For Canceled Or Significantly Delayed Flights
Back in April the U.S. Department of Transportation announced a new rule that would require airlines to “promptly provide passengers with automatic cash refunds” when their flights are delayed or canceled, and that rule is set to go into effect this fall.
Here’s everything you need to know:
What is the new federal rule for airline refunds?
The new regulations will entitle passengers to automatic refunds if their flights are significantly delayed or canceled or if airlines significantly change their flights, delay their checked bags, or fail to provide extra purchased services.
Prior to this rule, airlines were allowed to set their own standards for what kind of flight changes warranted a refund. This made it extremely difficult for passengers to understand and assert their refund rights as policies differed between airlines.
When will I be entitled to an automatic flight refund?
Under the new regulations travelers can receive refunds in the following situations:
Canceled or significantly changed flights:
- 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
- Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability
Significantly delayed baggage return:
- Checked bag fee is not delivered within 12 hours of a traveler’s 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
Extra services not provided:
- Travelers paid for an extra service–such as Wi-Fi, seat selection, or inflight entertainment–and the airline fails to provide this service
Note: travelers are only entitled to refunds if they don’t accept alternative transportation or travel credits offered.
How & when will I receive my automatic flight refund?
The new regulations make it simple and straightforward for passengers to receive the money they are owed. The rules require refunds to be:
- Automatic: airlines must automatically issue refunds without passengers having to explicitly request them
- Prompt: refunds must be issued within seven business days of them becoming due for credit card purchases and within 20 calendar days for other payment methods
- Cash or original form of payment: refunds must be provided in whatever original payment method the individual used to make the purchase, such as cash, credit card, or airline miles
Will I receive a flight refund of the full amount paid?
Yes, airlines and ticket agents must provide full refunds of the ticket purchase price minus the value of any portion of transportation already used.
The refunds must include all government-imposed taxes and fees and airline-imposed fees.
When do these new regulations go into effect?
The new rule is expected to go into place sometime this fall–perfect timing for holiday travel season!
What else should I know?
Beyond what’s listed above, the rule also requires airlines to provide prompt notifications to affected travelers of their right to a refund of the ticket and extra service fees.
In addition, in instances where travelers are restricted by a government or advised by a medical professional not to travel due to a serious communicable disease, the final rule requires that airlines must provide travel credits or vouchers.
U.S. Transportation Secretary Pete Buttigieg stated:
Passengers deserve to get their money back when an airline owes them – without headaches or haggling. Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.
More information can be found here.
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