US: New Rule Of Refunds Policy For Canceled And Delayed Flights

Article by Suman M Published on: 8:14 pm, 31 October 2024

In a major relief to the people traveling on flights in the US, the Department of Transportation (DOT) introduced a new rule to refund policy.

According to the DOT’s new rule, it requires automatic cash refunds for passengers facing canceled flights, major delays, or lost baggage. This means the passengers no longer need to raise a formal request for a refund or stay on call for hours to catch an executive for a refund. The airlines must process refunds without passengers needing to follow up.

Effective this week, the DOT’s rule on automatic airline refunds ensures passengers can receive prompt cash refunds for canceled or significantly altered flights, delayed baggage, and services that don’t deliver as promised.

‘Passengers deserve to get their money back when an airline owes them – without headaches or haggling. Today, our automatic refund rule goes into full effect. Airlines are required to provide prompt cash refunds without passengers having to ask’, said U.S. Transportation Secretary Pete Buttigieg.

The rule is projected to save travelers over $500 million annually.

However, the ‘significant change’ includes,

  • A departure or arrival time change of over three hours for domestic flights or six hours for international flights.
  • Departures or arrivals from a different airport than originally scheduled.
  • Downgraded seating.
  • An increase in the number of connections.
  • For travelers with disabilities, connections at different airports or flights on less accessible aircraft.

The baggage delay beyond 12 hours after a domestic flight lands will automatically refund the passenger’s baggage fee. International passengers can expect refunds when their bags are not received within 15 to 30 hours depending on the trip’s duration.

The new rule also covers additional services purchased by passengers, such as seat selection, Wi-fi, and inflight entertainment.

The new rule mandates that refunds must be prompt, automatic, and issued in full within seven business days for credit cards and 20 calendar days for any other form of payment.

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