Here’s what you need to know about the airline’s new refund rules
As of October 28, US travelers are officially entitled to compensation from airlines for canceled or significantly delayed flights, per three new rules from the US Department of Transportation.
New rules was developed under the Biden administration and announced in April but is now fully effective. Specifically, the final rule requires airlines to automatically refund passengers when:
- Their flight is canceled or significantly changed
- Checked baggage is significantly delayed
- Airlines do not provide additional services as purchased
But remember: The rules don’t apply to travelers who accept an airline’s offer to rebook on a flight after their original itinerary is canceled or significantly delayed. However, they also do not pay compensation for delays and cancellations that are not within the airline’s control. This law has been proposed.
What is considered a significant change?
DOT considers the following to be “significant changes:”
- Domestic journey departures or arrivals are delayed by three hours or more
- International flight departures or arrivals are delayed six hours or more
- The journey was moved up by six hours
- The traveler’s starting point or destination is changed
- Situations where travelers end up with more connections
- When a traveler is downgraded to a lower service category
- When disabled passengers are forced to travel through one or more connecting airports other than the original itinerary
- When a passenger with a disability must fly on an aircraft that is less accessible or more accommodating than originally planned
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Additionally, travelers will be eligible for a refund of checked baggage fees if their bags are not delivered within 12 hours of their domestic flight arriving at their gate, or within 15 to 30 hours for international flights. To receive compensation for significantly delayed baggage, passengers will have to submit a mishandled baggage report to the airline at their arrival airport.
Passengers are also now entitled to a refund for disrupted in-flight services, such as Wi-Fi, seat selection or entertainment.
How soon will you receive a refund after your flight?
According to the DOT, refunds must be returned to the original form of payment within seven business days for credit card purchases and 20 days for all other payment methods. Airlines must also notify affected passengers of their right to a refund of the cost of their tickets and any additional service fees.
Airlines cannot provide vouchers, credits or other forms of compensation in lieu of the original form of payment unless the passenger chooses to accept these alternatives.
Finally, in cases where customers are unable to travel to, from, or stay in the United States due to infectious disease, the new regulations require airlines to provide travel credits or vouchers valid for at least five years. Passengers may be asked to present documents to support their claim.
Bottom line
In theory, these newly introduced regulations will eliminate the “bumps” that travelers have to go through to claim compensation for canceled or delayed flights – but it remains to be seen if airlines how smoothly the airline will carry them out.
“We support the automatic refund rule and are happy to assist customers in obtaining a refund when they choose not to rebook,” a spokesperson said. US airlinesa lobbying group representing major North American airlines.
Additional regulations require airlines to display in advance ancillary fees, such as additional fees for checked baggage, large carry-on bags, and fees for changes and cancellations of pending flights. Legal action from airlines.
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