Passengers Entitled to Refunds for Significant Flight Changes Under New DOT Regulations
The US Department of Transportation (DOT) has implemented new regulations that require airlines to provide automatic refunds to passengers when flights are canceled or significantly altered. This significant change aims to simplify the refund process, reduce disputes, and impose additional costs on the airline industry. The regulations, which cover a range of flight changes and lost baggage scenarios, extend to lost bag fees, in-flight services, and the elimination of unexpected fees.
Circumstances Entitled to Refunds
Under the new rules, passengers are entitled to refunds if there is a “significant change” to their flights. This includes:
– Flight cancellations
– Significant flight delays (defined as more than 3 hours for domestic flights and 6 hours for international flights)
– Flight changes that result in a significant change in the passenger’s itinerary (e.g., a change in destination or departure/arrival time by more than 4 hours)
Additional Refund Provisions
Passengers will also receive refunds for checked bag fees if the bag is lost and not delivered within 12 hours of a domestic flight’s gate arrival. International flights have from 15 to 30 hours to return a lost bag, depending on their length. Anyone who pays for a service, such as in-flight Wi-Fi or entertainment, and doesn’t receive it will also get their money back.
Simplified Refund Process
In addition, DOT made changes to make it easier for passengers to receive the money they’re owed by requiring prompt automatic refunds in cash or through the original form of payment. Airlines are required to provide refunds within 7 business days for canceled flights and within 30 business days for significant delays or itinerary changes.
Industry Impact and Response
The refund changes are poised to add significant costs across the airline industry, which could have a disproportionate impact on low-cost carriers, according to industry analysts. However, the Airlines for America trade group stated that its member carriers already exceed consumer protection regulations and provide various options and services at low ticket prices.
Additional Regulations and Enforcement
The DOT also released a final rule requiring airlines to clearly communicate their extra fees upfront for checked luggage, carry-on bags, or for canceling or changing reservations. DOT pointed out a 30% increase in revenue from baggage fees between 2018 and 2022, and emphasized that airlines should compete on services and not unexpected fees.
The DOT will continue to pursue aggressive enforcement when airlines violate rules, as evidenced by the recent $140 million record fine against Southwest Airlines for its operational meltdown in December 2022.
