The US Department of Transportation (DOT) has recently released new regulations that require airlines to provide automatic refunds to passengers in the event of canceled or significantly altered flights. These regulations are designed to make it easier for passengers to get their money back and to ensure consistency in refund policies across airlines. According to the DOT, complaints related to airlines and ticket agents refusing or delaying refunds constituted 87 percent of all air travel service complaints during the height of the Covid-19 pandemic in 2020. Under the new rule, passengers will be entitled to refunds in the following circumstances:
–
Significant Change to Flight:
Travelers will receive refunds if there is a significant change to their flights, such as a schedule change of more than three hours, a change in departure or arrival airport, or a significant downgrade in seating.–
Lost Bags:
Passengers will also get 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 will have from 15 to 30 hours to return a lost bag, depending on the flight’s length.–
Undelivered Paid Services:
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.The DOT has implemented these changes to make it easier for passengers to receive the money they are owed. Airlines are now required to provide prompt automatic refunds through the original form of payment, including cash. The Airlines for America trade group has stated that its member carriers already adhere to and often exceed regulations on consumer protection. Additionally, the DOT has 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.
