US airlines
are now mandated to provide passengers with cash refunds should their flight suffer from a lengthy delay or become canceled. The requirement is part of a new ruling issued by the Department of Transportation (DOT)
on Monday.

It comes as US Transportation Secretary Pete Buttigieg has worked in the last few years to help passengers understand their rights and keep all carriers accountable. The rule will provide refunds to affected travelers automatically without “having to ask.”

“Goes into full effect”

Buttigieg confirmed the federal ruling in a post on Monday. The secretary explained that travelers should no longer have to endure any complications when it comes to receiving necessary compensation.

“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.”

Cancelations, bags, & ancillary fees

The ruling outlines that all passengers
are entitled to total compensation if their flight is canceled or subject to significant changes.

Aircraft lined up under the PHX SkyTrain bridge at Phoenix Sky Harbor International Airport.

Photo: Phoenix Sky Harbor International Airport

It also includes if the traveler does not accept the changes to their itinerary, chooses to rebook on an alternative flight, or is subject to alternative compensation.

ORF baggage claim

Photo: Norfolk International Airport

Automatic refunds extend to passengers who have filed a mishandled baggage report. Passengers must receive full payment of their baggage fee if the bag is not delivered within a specific applicable timeframe after their flight has arrived:

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If an airline fails to do so, travelers must also receive a refund for any ancillary fees, such as WiFi, seat selection, or inflight entertainment, that were paid for.

Passengers urged to file complaints if airlines do not comply

According to USA TODAY, flight cancelation refunds must be made to the original form of payment, and the airline may not use vouchers or credits in place of compensation unless the original ticket was purchased that way. Additionally, the refunds must cover the full unused value of the ticket.

“Air travelers have a right to a refund if their flight is canceled or significantly changed and they are not offered, or choose not to accept, alternatives such as rebooking,” Buttigieg said in a letter to airline CEOs earlier this year. “Air travelers do not have to accept travel vouchers or credits that lock them into future travel.”

Delta Air Lines Planes lined up at Minneapolis–Saint Paul International Airport.

Photo: Minneapolis–St. Paul International Airport

The DOT will not require airlines to issue refunds for previous segments of a trip that were already flown before the subsequent flight was canceled. However, if airlines tell travelers they will not offer a refund, the DOT says passengers are advised to file a complaint with the department’s Office of Aviation Consumer Protection.

“We are encouraged by the historically high levels of demand for passenger air travel being served by airlines in America today,” Buttigieg explained. “A thriving U.S. commercial aviation sector is good for all Americans, and all of our regulatory and enforcement activities are designed to ensure that this sector thrives on the basis of excellent safety, fair and vigorous competition, and strong customer service.”

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