The Department of Transportation (DOT) has finalized new regulations mandating airlines to promptly reimburse passengers for canceled or significantly delayed flights, as well as substantial itinerary changes. Airlines are obligated to issue refunds in cash or the original payment method, providing passengers with the option to accept travel credit, alternative transportation, or a different flight offered by the airline. The policy extends refunds to passengers whose flight itineraries undergo significant alterations, including changes in arrival or departure times by three hours or more for domestic flights and six hours or more for international flights. Additional refund scenarios include modifications to departure or arrival airports. If checked baggage is significantly delayed, airlines are required to refund the baggage fee after a mishandled baggage report is filed. Passengers are entitled to a refund if their checked baggage is not received within 12 hours of a domestic flight’s arrival at the gate or 15-30 hours for international flights. Refunds are also applicable for non-delivery of paid-for in-flight amenities such as seat assignments, Wi-Fi, and entertainment. The DOT has also announced a requirement for airlines to disclose additional fees, including checked baggage fees and cancellation fees, before passengers make ticket purchases. US Transportation Secretary Pete Buttigieg emphasizes that airlines should compete based on quality of service, not unexpected fees, and estimates that the new DOT rule will save passengers over half a billion dollars annually. The DOT will implement the new rules over the next six to twelve months.
DOT Finalizes Passenger Refund Rules
