In response to numerous complaints about airline service, particularly during the COVID-19 pandemic, the federal government has announced a new rule simplifying the refund process for passengers affected by canceled or significantly delayed flights.
According to the new rules, airlines are required to automatically issue cash refunds to passengers whose flights are canceled or significantly delayed, if they choose not to rebook on another flight. This eliminates the need for passengers to request refunds and reduces the hassle associated with the process.
The Department of Transportation (DOT) has established clear definitions for significant delays: more than three hours for domestic flights and more than six hours for international flights. Airlines may still offer alternative forms of reimbursement, such as vouchers or travel credits, but they must first inform passengers of their right to a cash refund.
Refunds must be issued automatically, without passengers having to make explicit requests or undergo lengthy procedures. Cash refunds must be issued within seven days for credit card purchases and within 20 days for other payment methods.
The new rules also extend refund rights to situations where airlines change departure or arrival airports, downgrade service class, or add connecting stops. Passengers with disabilities have additional refund rights when airlines change connecting airports or remove accessibility features due to plane changes.
Furthermore, refunds will be provided for checked-bag fees if baggage is not delivered within 12 hours for domestic flights or 15 to 30 hours for international flights. Refunds also include fees for add-on purchases, such as Wi-Fi or seat selection, if the airline fails to provide these services.
