Due to Department of Transportation (DOT) rules signed into law, airlines must now promptly refund passengers when flights are canceled or significantly delayed. The DOT introduced the rules last April, which required airlines to reimburse passengers without “having to explicitly request them or jump through hoops” in the event of flight delays, changes, or delayed bags. In May, the rules were signed into law via the FAA Reauthorization Act, and this Monday, took effect.
Details of the new regulations
Previously, customers had to take the initiative to seek refunds for delayed or canceled flights or lost bags. Now, it’s the opposite, with airlines required to issue refunds proactively instead of credits or vouchers or offers like a significantly delayed flight or a different flight. While passengers can still accept those offers, if they don’t, an automatic refund must be issued promptly.
According to the law, a “significant” delay is three hours on domestic flights or six hours on international flights. In those cases, airlines must provide refunds within seven days for credit cards or 20 days for other payment types.
The law also applies to baggage. On domestic flights, if baggage isn’t delivered within 12 hours, passengers are eligible for a refund of their checked bag fee. On international flights, airlines have 15 to 30 hours to deliver lost bags.
Additionally, paid-for add-ons like in-flight entertainment, WiFi, or seat selection must be refunded if not provided.
When the rules were introduced in April, U.S. Transportation Secretary Pete Buttigieg said: “Passengers deserve to get their money back when an airline owes them—without headaches or haggling. Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”