Airlines must provide refunds for delayed and canceled flights

The US Department of Transportation has enacted rules that require airlines to provide refunds to customers when flights are canceled or significantly changed.

Biden-Harris Administration Announces Final Rule Requiring Automatic Refunds of Airline Tickets and Ancillary Service Fees | US Department of Transportation

Until now, even if a flight was delayed or canceled, it was up to each airline to decide which flights were eligible for refunds, making it difficult for users to claim their right to a refund or even to know whether they had a right to a refund in the first place. With this rule, which came into effect to improve this situation, airlines will be obligated to provide refunds to users under clear rules.

◆If your flight is cancelled or changed significantly
If a flight is canceled or significantly changed and the airline is unable to provide you with alternative transportation or a travel credit, the airline must refund you.

A 'significant change' is a delay of more than three hours for domestic flights and more than six hours for international flights, as well as a change to a different airport or airport of departure or arrival, an additional connection, being downgraded to a lower cabin class, or changing to a different airport or aircraft that makes it less accessible for people with disabilities.

◆ If the return of your baggage is significantly delayed
If you report your lost checked baggage and it is not received within 12 hours of arrival at the gate for a domestic flight, or 15-30 hours of arrival at the gate for an international flight, you may be eligible for a refund of the checked baggage fee.

If additional services are not provided
If an airline doesn't provide extra services like Wi-Fi, assigned seats or in-flight entertainment, passengers can get a refund for the fees they paid for those extra services.

The regulations require that these refunds must be made automatically, without any explicit request or hassle from the consumer: within 7 business days of the refund due date for purchases made with credit cards, and within 20 days for purchases made with other payment methods.

In addition, there are rules regarding the refund method, and refunds must be made in the 'original payment method' such as cash, credit card, or miles, not in the form of vouchers or coupons, and the full amount must be refunded, including all fees paid. Tickets eligible for refunds include those purchased directly from airlines, as well as those purchased from travel agencies and third-party sites such as Expedia and Travelocity.

According to the Department of Transportation, complaints about refunds have skyrocketed with the spread of COVID-19, accounting for 87% of all complaints to the Department of Transportation in 2020. When the rules came into effect, Pete Battigui, Secretary of the Department of Transportation, said, 'Customers have the right to get their money back without having to go through complicated procedures or haggling. Our new rules set a new standard that requires airlines to provide refunds promptly.'