Since last month, airlines have been required to issue automatic refunds to passengers affected by changes to their flights, eliminating the need for passengers to initiate the process. This measure took effect following the implementation of a new regulation by the U.S. Department of Transportation (DOT).
In April 2024, the DOT issued a final rule that, for the first time, defines which flight changes are considered significant and therefore entitle passengers to a refund if they choose not to continue with their booked travel. The rule applies to flights to, from, or within the United States.
The regulation also mandates that airlines promptly notify passengers affected by a flight cancellation or significant change of their right to a refund, including for the ticket and fees for additional services.
Reasons You May Be Eligible for an Automatic Refund:
- Flight Cancellation Without Rebooking
Under the new rule, passengers are entitled to a full refund if the airline cancels their flight and does not rebook them or if they decline alternative compensation such as vouchers or miles.
- Flight Cancellation and Rebooking Refusal
If passengers decline rebooking or compensation offered by the airline after a cancellation, they may demand a refund.
- Significant Itinerary Changes
If an itinerary undergoes a significant change and the passenger declines the revised plan or any offered compensation, they are entitled to a refund. According to the DOT, significant changes include:
– Departure earlier or arrive later by more than 3 hours for domestic flights or 6 hours for international flights.
– Change in the origin or destination airport.
– Increase in the number of connections.
– Downgrade to a lower class of service.
– Connections at less accessible airports for passengers with disabilities.
- Significant Baggage Delays
If baggage is delayed by more than 12 hours for domestic flights or 15 to 30 hours for international flights (depending on the flight duration), passengers can claim a refund for the checked baggage fee.
- Unprovided Additional Services
Passengers can request a refund if they paid for services such as Wi-Fi, seat selection, or in-flight entertainment that were not provided by the airline.
How Refunds Must Be Issued
According to the new rule, refunds must be processed promptly: within seven business days for credit card purchases and within 20 calendar days for other payment methods. Refunds must be issued in cash or the original form of payment unless the passenger opts for credits or vouchers, which must be valid for at least five years. Refunds include the full ticket price, taxes, and fees, minus the value of any transportation already used.
When Refunds Do Not Apply
Passengers are not entitled to a refund if they accept a rebooked flight with the airline or continue with a significantly changed itinerary. However, most U.S. airlines have committed to providing accommodations such as hotel stays for overnight delays or meals during significant delays and cancellations caused by issues within the airline’s control.