In a major win for travelers this week, the U.S. Department of Transportation has announced that there will be new requirements for airlines to compensate passengers with automatic cash refunds for significantly delayed and canceled flights. The rule also applies to delayed checked bag fees and failure to provide extra services that passengers already purchased, such as in-flight Wi-Fi. According to DOT Secretary Pete Buttigieg, this move is the largest expansion of airline passenger rights in the department’s history.
“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” Buttigieg said in a statement.
Just how easy does this rule make it for passengers to obtain refunds when their travel plans don’t go as planned? Read on for what to know, how travelers will be affected and when it goes into effect.
What is the new law?
One of the biggest wins to come from these new DOT requirements is that airlines can no longer determine for themselves what kind of flight changes warrant compensation. This made it difficult for passengers to keep up with the refund policies varying from airline to airline.
Now, passengers will be entitled to automatic compensation if their flight is cancelled or significantly changed if they do not accept alternative transportation or travel credits offered. What exactly is a “significantly changed” flight? DOT defines it as a delay of more than three hours for a domestic flight and more than six hours for an international flight.
Additionally, passengers will also be entitled to a refund of their checked bag fee if they file a mishandled baggage report and their luggage is delayed by more than 12 hours of their domestic flight arriving at the gate, or 15 to 30 hours of their international flight arriving at the gate. And as if all of that wasn’t enough, refunds will also be issued if the airline fails to provide purchased extra services like in-flight entertainment, Wi-Fi and special seat selection.
Will passengers still need to request a refund?
The days of figuring out how to make a refund request or waiting hours on the phone are behind us. Passengers will no longer have to explicitly make refund requests or jump through hoops, as airlines will be mandated to automatically provide refunds for the aforementioned scenarios.
Who will qualify for a refund?
All passengers will be entitled to a refund if they do not accept alternative transportation or travel credits as compensation. This new law also extends to tickets bought through third-party channels like travel agents or specialized websites such as Travelocity, Expedia or Skyscanner. This is another win for frequent flyers, who know that navigating refunds through third-parties can often be an added frustration.
How much money will be refunded?
Airlines and ticket agents must provide full refunds of the ticket purchase price, excluding the cost of any transportation portion already used.
How soon will the refunds be issued?
Airlines must issue refunds within seven business days for payments made on a credit card. For all other methods of payment, refunds must be issued within 20 days. Airline required refunds must be provided in cash or the original payment method used to make the purchase, such as a credit card or airline miles.
When will the law go into effect?
Airlines operating in the U.S. will have about six months to comply with the new changes, which means that it should be in effect before the end of the year!
You can read the full rules and get more information on the airline refund policy here.