In a significant move to protect consumers, the US Department of Transportation (DOT) has announced new rules requiring airlines to provide automatic refunds for canceled or significantly altered flights. The regulations apply to all travel within, to, and from the United States.
Under these new rules, passengers are entitled to cash refunds when their flights are canceled or undergo significant changes such as departure or arrival time alterations of more than three hours for domestic flights and six hours for international flights. Additionally, passengers will receive refunds if they are downgraded to a lower class than originally purchased, experience airport changes, or encounter an increase in the number of connections.
Furthermore, travelers will be entitled to refunds for checked bag fees if their bags are lost and not delivered within 12 hours for domestic flights and from 15 to 30 hours for international flights. Anyone who pays for a service, such as in-flight Wi-Fi or entertainment, but does not receive it will also be eligible for a refund.
The DOT reported that complaints related to airlines and ticket agents rejecting or delaying refunds made up 87% of all air travel service complaints during the Covid-19 pandemic in 2020. In response, the new rules aim to make it easier for passengers to get their money back without hassle or haggling.
The airlines will be required to issue automatic refunds through the original form of payment within seven business days for credit card purchases and 20 calendar days for other payment methods. The rules also require airlines and ticket agents to clearly communicate all fees upfront before purchases are made, ensuring transparency and fairness.
These new regulations are expected to save consumers over half a billion dollars each year in hidden fees. Pete Buttigieg, the US Transportation Secretary, stated that passengers deserve to know upfront what costs they are facing and should receive their money back when an airline owes them.
