By yourNEWS Media Newsroom
With millions of Americans taking to the skies this Thanksgiving, holiday travel is often plagued by delayed or canceled flights. This year, however, travelers are benefiting from new Department of Transportation (DOT) rules requiring airlines to provide automatic refunds in the event of flight disruptions, a regulation aimed at simplifying compensation for passengers.
The updated regulations, which took effect prior to the holiday season, establish uniform standards for flights to, from, or within the United States. According to the DOT, the rule addresses “persistent issues reported by airline passengers” and eliminates the previously confusing and inconsistent airline-specific policies regarding refunds.
Key Provisions for Refund Eligibility
Under the new rules, passengers are entitled to automatic refunds under specific circumstances:
- Canceled Flights: If a flight is canceled and the airline does not rebook the passenger or the passenger does not accept rebooking or other compensation, a refund is required.
- Significant Changes: Flights that are significantly altered—such as changes to departure or arrival times (over three hours for domestic flights and six hours for international), departure or arrival airports, or increases in the number of connections—qualify for refunds if passengers choose not to proceed with the updated itinerary.
- Service Downgrades: Passengers downgraded to a lower class of service or placed on less accommodating planes are eligible for refunds.
- Baggage Delays: Refunds for checked bag fees apply if luggage is delayed by more than 12 hours on domestic flights or between 15 and 30 hours for international flights, depending on flight length.
- Undelivered Services: Refunds are available for paid services, such as Wi-Fi or seat selection, that are not provided during the flight.
Refund Processing Requirements
Airlines are now required to process refunds automatically, within seven business days for credit card payments and 20 calendar days for other payment methods. Refunds must cover the full ticket price, including taxes and fees, and must be returned in the original form of payment.
Passengers are not required to accept vouchers or travel credits in place of cash refunds unless they explicitly choose alternative compensation. If vouchers are accepted, they must remain valid for a minimum of five years from the date of issuance.
Additional Support from Airlines
Most U.S. airlines have also committed to providing additional accommodations for delays and cancellations under their control, such as hotel stays for overnight disruptions or meal vouchers for significant delays.
The DOT’s new guidelines aim to alleviate some of the frustrations associated with holiday travel disruptions. By creating clear refund standards and streamlining the process, the rules offer travelers greater confidence as they navigate busy airports during the holiday season.