Until recently, the rules surrounding flight compensation in the event of delays and cancellations have been murky at best, with domestic airlines deciding terms for reimbursement independently. Earlier this week, the Department of Transportation (DOT) announced a new set of rules that serve to standardize when and how airlines are required to issue refunds to passengers.
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Cash for Cancellations: New DOT Rules Are Making Airline Refunds Easier
According to a DOT release, passengers who experience significant flight disruptions will now receive “automatic” and “prompt” cash refunds from airlines. Examples of refundable disruptions include flight and baggage delays, cancellations, and notable changes to bookings, such as rerouting passengers to a different departure airport or adding extra connections. Failure to provide paid-for services such as in-flight WiFi or seat upgrades also necessitates refunds.
Airlines may still offer alternatives to passengers, including new flights or travel credits, but if denied, they’re required to provide refunds for the full amount of the original fare. Failure to provide paid-for services such as in-flight WiFi or seat upgrades also necessitates refunds.
As part of these new rules, the DOT is clearly defining what constitutes a significant flight delay across US airlines for the first time: Passengers whose departure or arrival times are pushed back by more than three hours on domestic flights, or six hours on international flights, will be reimbursed in full. Checked bag fees must also be refunded if baggage is delayed for more than 12 hours on a domestic flight or 15-30 hours on an international flight, depending on the route.
That airlines were previously allowed to set their own standards for “significant” delays and disruptions posed challenges for passengers. Not only did it put the onus on travelers to instigate the reimbursement process, but it also forced passengers to navigate confusing policies and withstand long, drawn-out communiques with reluctant airlines. Rather than monetary compensation, this often resulted in reimbursement via travel credits or vouchers.
According to US Transportation Secretary Pete Buttigieg, the new rules are intended to help passengers get the refunds they’re owed without “headaches or haggling.”
As an alternative to immediate cash refunds, passengers are eligible for reimbursement in the form of their original method of payment, including credit card purchases or airline-mile redemption. If reimbursed via credit card, passengers can expect to see full refunds within seven business days. The standard for other forms of payment is now 20 calendar days.
As part of the promise to refund passengers in full, travelers should also note that refunds are due for the total amount of what they originally paid, including taxes and fees. 