Airlines have now been told to issue automatic refunds under a new Department of Transportation rule that went into effect this week.
Flyers are now guaranteed a refund if a flight is delayed or canceled, and you don’t have to file any paperwork.
Department of Transportation Secretary Pete Buttigieg said Wednesday that the new regulations are an effort to incentivize airlines to minimize disruptions, delays or cancellations.
Airlines have now been told that automatic refunds should be made for ‘significant changes’ to a flight
“If an airline knows that all passengers – rather than just a few passengers on a canceled flight – are likely to actually get their money back, this gives them another set of reasons to invest and the realistic planning that reduces these cancellations. That will probably happen initially,” he said when the new ordinance was announced.
The new regulations also come with a strict definition of what constitutes a ‘significant change’, which previously varied from airline to airline.
Under the new law, a ‘significant change’ is defined as any change to a flight that causes a delay of three hours or more for domestic flights and a delay of at least six hours for international flights.
Refunds will also be provided automatically if a passenger is downgraded to a lower class of service or to an aircraft less suitable for a passenger with disabilities.
Any changes to a flight’s departure or arrival airport or adding a connection will also result in an automatic refund. As well as when a passenger paid to select a particular seat but was forced to sit elsewhere.
Under the new regulations, should checked baggage not be delivered to the gate within 12 hours of a domestic flight or within 15-30 hours of arrival of an international flight, airlines must now refund any checked baggage fees paid by passengers.
However, for baggage claim refunds, the passenger must first file a mishandled baggage report with an airline.
It also applies to all flyers who have used and paid for an airline’s Wi-Fi. If passengers pay for the service on board and it does not work properly, they will be refunded the cost of the service.
The DOT’s latest rule makes it easy for passengers to receive a refund without having to navigate paperwork or spend hours on the phone.
On their website they state: ‘Plus, so would passengers [previously] “Receive a travel credit or voucher by default from some airlines instead of getting their money back, so they can’t sue or rebook their refund on another airline when their flight is changed or canceled without going through a cumbersome application process.”
Their new rule means that refunds will be issued automatically and quickly, in cash or via the original payment method, and for the full amount of the ticket purchase price.