US airlines will now have to automatically refund customers for canceled flights, delays
The US Department of Transportation (DOT) has introduced new regulations mandating airlines to offer automatic refunds to travelers if their flights are canceled or significantly delayed. The final rules, released on Wednesday, aim to ensure a smoother process for passengers to obtain refunds and to standardize refund policies across all airlines operating to, from, and within the United States.
The backdrop to these new rules is the spike in complaints during the height of the COVID-19 pandemic in 2020. Complaints related to airlines and ticket agents rejecting or delaying refunds made up 87% of all air travel service complaints during that period. US Transportation Secretary Pete Buttigieg, in a statement, emphasized, “Passengers deserve to get their money back when an airline owes them — without headaches or haggling.”
Passengers will be entitled to refunds if there's a "significant change" to their flights. This includes the following scenarios:
- Flight Delays: A change in departure or arrival time by more than three hours for domestic flights or six hours for international flights.
- Downgrades: If a passenger is downgraded to a lower class than originally purchased, such as from first class to economy.
- Airport Changes: Any change in departure or arrival airport.
- Increased Connections: An increase in the number of connections during a journey.
- Inconvenient Transfers: Changes to connecting or planes that are less accommodating for people with disabilities.
If a checked bag is lost and not delivered within 12 hours of a domestic flight's gate arrival or within 15 to 30 hours for international flights (depending on the flight length), passengers are entitled to refunds for checked bag fees. Additional refund entitlements apply if a paid service like in-flight Wi-Fi or entertainment is not provided.
To facilitate easier refunds, the DOT now requires airlines to issue prompt automatic refunds through the original form of payment, including cash.
Alongside these new rules, the DOT has also mandated airlines to clearly communicate their extra fees upfront for services such as checked luggage, carry-on bags, or cancellation/change fees. According to the DOT, airlines saw a 30% increase in revenue from baggage fees between 2018 and 2022. Secretary Buttigieg underscored that these new rules are designed to help passengers avoid surprise fees, with an estimated annual saving of more than half a billion dollars for travelers.
Source: https://economictimes.indiatimes.com/nri/visit/us-airlines-will-now-have-to-automatically-refund-customers-for-canceled-flights/articleshow/109564864.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
