Flight delayed or canceled? Here’s how to get a full refund during the BIG airline shakeup

Airlines will be forced to offer cash refunds for delayed or canceled flights without customers having to ask, under major new rules being finalized by the Biden administration.

The new planalmost three years in the making, will require airlines to issue automatic refunds within a few days of a flight cancellation or “significant” delay.

This is a big change for consumers: the regulations will classify a ‘significant’ delay as at least three hours for domestic flights and six hours for international routes.

Under current rules, airlines can set their own standards for what kind of flight change warrants a refund, giving them much more leeway.

The changes aim to put an end to the often long and frustrating process customers have to go through to get their money back, which can involve hours of waiting on the phone or submitting ‘cumbersome’ digital paperwork.

The regulations, currently being finalized by the U.S. Transportation Department, also require airlines and ticket agents to disclose any additional charges beyond the full fare when purchasing tickets online.

The ministry said consumers will save as much as $543 million annually if they are made aware of additional airline fees, including baggage fees and change and cancellation fees.

The government will also require airlines to refund baggage fees if bags are not delivered within 12 hours of domestic flight arrivals or 15 to 30 hours of international flight arrivals.

Refunds will also be requested for additional inflight services, such as WiFi, seat selection or inflight entertainment, if they are defective or if the airline does not provide them.

Carriers will also be forced to tell passengers they have a guaranteed seat for which they don’t have to pay extra, although they can still charge for choosing specific seats.

Airlines and ticket agents are required to provide refunds within seven business days after refunds are due for credit card purchases and within twenty calendar days for other payment methods.

They may not replace vouchers or travel credits with a cash refund unless a passenger chooses another type of compensation.

“Passengers deserve to get their money back when an airline owes them — without the hassle or haggling,” said U.S. Transportation Secretary Pete Buttigieg.

“Our new rule sets a new standard and requires airlines to provide immediate refunds to their passengers.”

“Passengers deserve to get their money back when an airline owes them – without the hassle or haggling,” said US Transportation Secretary Pete Buttigieg.

Airlines must also refund baggage fees if the baggage is not delivered within 12 hours of the arrival of a domestic flight or 15 to 30 hours of the arrival of an international flight.

Airlines for America, a trade group representing major airlines, said airlines “provide consumers with transparency and choice from initial search to landing.”

“U.S. airlines are committed to providing the highest quality of service, including clarity on pricing, fees and ticketing conditions.”

The group said the 11 largest U.S. airlines issued $43 billion in customer refunds between 2020 and 2023. AP reported.

The new rules will come into effect over the next two years, the ministry said, as part of a broad government crackdown on junk fees.

Last month, a U.S. Senate committee said it was stepping up its investigation into billions of dollars in annual airline fees.

It noted that between 2018 and 2022, major U.S. airlines’ total revenue from baggage fees increased from $4.9 billion to $6.8 billion.

Major airlines have come under fire in recent months for raising baggage fees and making it harder to earn frequent flyer miles in an effort to boost profits.

Earlier this month, JetBlue introduced dynamic checked-in pricing luggage costs – the first major US airline to do so.