The Department of Transportation reminded airlines that they must provide prompt automatic refunds to customers who miss their flight due to cancellation or delay. This announcement was made by US Transportation Secretary Pete Buttigieg, emphasizing that passengers should receive their money back without any difficulties. Passengers are entitled to a full refund if their flight is canceled or significantly changed, and if they do not accept alternative transportation options or travel credits offered by the airlines. The DOT defines a significant change as flight departure or arrival times moving more than 3 hours domestically and 6 hours internationally, departure or arrival from a different airport, increased connections, class downgrades, flights from remote airports, or flights on less accessible planes for passengers with disabilities.
Before the final rule from Secretary Buttigieg, airlines could define what they considered a significant change, often creating confusion and frustration for passengers trying to obtain a refund. The new rules will also cover tickets purchased through third-party sites like Expedia and Travelocity, providing a standard of full accountability across the board. The regulation does not only cover canceled flights but also extends to airlines failing to provide additional services that were purchased, such as WiFi, seat selection, or in-flight entertainment. Airlines and ticket agents must issue refunds within seven business days of being due for credit card purchases and 20 calendar days for other payment methods. Full refunds must include government-imposed taxes, fees, and airline-imposed fees.
Passengers who face delays due to checked baggage issues can also qualify for a full refund for their checked bag fee if their luggage does not arrive within a certain time frame. This includes refunds for delayed baggage on domestic flights beyond 12 hours and international flights beyond 15-30 hours. The new airline rules will be implemented within six to 12 months, with airlines required to provide automatic refunds when owed and to notify passengers of immediate changes to their travel plans, whether it be a cancellation or delay. Airlines will also offer refunds of the ticket and any additional services purchased. The DOT promises that these new rules set a standard for airlines to promptly provide cash refunds to their passengers, ensuring a smoother and more transparent process for customers facing flight disruptions.
