Airlines have now been told they must give automatic refunds under a new Department of Transportation rule that went into effect this week.
Flyers are now guaranteed their money back should a flight be delayed or cancelled, and you won’t need to file any paperwork.
The Department of Transportation’s Secretary, Pete Buttigieg, said on Wednesday that the new regulation is an attempt to incentivize airlines to minimize disruptions, delays or cancellations.
Airlines have now been told that automatic refunds must be issued for any ‘significant changes’ to a flight
‘When an airline knows that all – instead of just a few passengers on a canceled flight – are likely to actually get their money back, it gives them a different set of reasons to put in the investment and the realistic scheduling that makes those cancellations less likely to happen to begin with, ‘ he said as the new regulation was announced.
With the new regulation also comes a strict definition for what constitutes as a ‘significant change’, which used to vary from one airline to another.
Under the new law, a ‘significant change’ will be defined as any change to a flight that includes a three-hour or longer delay for domestic flights, and at least a six-hour delay on international flights.
An automatic refund will also be issued if a passenger is downgraded to a lower class of service or to a plane that is less accommodating to a passenger with disabilities.
Any changes to a flight’s departure or arrival airport or if a connection is added will also result in an automatic refund. As well as if a passenger paid to select a particular seat but were forced to sit elsewhere.
Should any checked luggage not be delivered within 12 hours of a domestic flight or within 15-30 hours of an international flight arriving at their gates, under the new regulation airlines must now refund any checked bag fees passengers have paid.
Any baggage claim refunds, however, will first need a passenger to file a mishandled baggage report with an airline.
It also applies to any flyers who have used and paid for an airline’s Wi-Fi. If passengers pay for the service on board and it fails to work properly, they will be issued a refund to the cost of the service.
The DOT’s final rule makes it simple for passengers to receive a refund without having to navigate paperwork or sit on the phone for hours on end.
On their website, they stated: ‘In addition, passengers would [previously] receive a travel credit or voucher by default from some airlines instead of getting their money back, so they could not sue their refund or rebook on another airline when their flight was changed or canceled without navigating a cumbersome request process.’
Their new rule means refunds will be issued automatically and promptly, in cash or the original form of payment, and in the full amount of the ticket purchase price.
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