Flight Canceled? Airlines Must Now Refund Your Money

The Department of Transportation (DOT) announcing the new rules, saying customers deserve reimbursement for severely affected flights or services not rendered. And they are making it easier for passengers to get that compensation without jumping through hoops and filling out forms.

This is a big day for America’s flying public.”

Transportation Secretary Pete Buttigieg

Buttigieg goes on to say this is the largest expansion of passenger rights in the department’s history. The new rules pertain to canceled flights and flights that are severely delayed. They also apply to services, like WiFi and seat assignments, that are not available on the flight. And refunds must be issued within seven days.

“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Buttigieg said in a statement. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”  Here is how the new rules affect flights:

Canceled Flights

If a flight is canceled, passengers have a few options: they can choose to take an alternate flight or choose to receive a full refund; they cannot choose both. If a passenger chooses to take an alternate flight, no refund will be issued.

But they may get a voucher or travel credit to make up for the inconvenience. If they choose to not go on any other flight, they are eligible for a full refund of their ticket purchase price. 

The new rules also dictate that the airline must process the refund automatically. Passengers will not have to fill out cumbersome forms or jump through hoops; the airline will automatically issue a full refund. And the refund will be monetary, refunded to the original form of payment.

Under the new rules, airlines will not be able to issue vouchers for future travel for canceled flights. The refund process is in effect for any flight that’s canceled, regardless of the reason. In the past, airlines would not issue refunds or vouchers if the flight was canceled due to weather, but that is no longer the case under the new DOT rules. 

Significantly Changed Flights

The Department of Transportation is now deciding what constitutes a “significant delay.” In the past, it was up to the airlines to decide how long of a delay was too long, and each airline had different numbers.

But now the new DOT rules cover a delay that’s longer than three hours for domestic flights and more than six hours for international flights. Once a flight hits those milestone delays, refunds will start being issued automatically. 

Significant changes to a flight will also include changing the departing or arriving airport, increasing the number of connections, and being downgraded to a lower class of travel.

Being changed to a different aircraft that’s less accessible for a passenger with a disability is also covered under the significantly changed category. All these instances will trigger refunds for the passenger. 

Delayed Baggage

Baggage is also covered under the new, stricter, rules. The Department of Transportation is requiring airlines to refund baggage fees if your bag is not delivered within 12 hours of landing for a domestic flight.

For international flights, airlines will have between 15 and 30 hours to deliver bags. The exact amount of time will depend on how long the international flight is. To ensure a refund, a passenger must fill out a lost baggage report with the airline. 

Other Services

The new DOT rules also cover miscellaneous charges if the service is not provided on the flight. This includes WiFi, seat selection, and inflight entertainment. If a passenger pays for these amenities and they are not provided for any reason, the passenger will get a full refund.

If a passenger is not allowed to travel on his or her flight due to a medical reason, that will also prompt a refund. This can include any serious communicable diseases which prevent the passenger from flying as advised by a medical professional or the government.

Under this exception, airlines are allowed to issue travel credits or vouchers; they do not have to refund the fare in case. The rules state the vouchers or credits must be transferable and valid for five years. 

Timeline

All airlines will now have six months to comply with the new DOT rules. “Airlines are not enthusiastic about us holding them to a higher standard,” Buttigieg said.

The department says these new rules will help everyone. “To be clear, we want the airline sector to thrive. It is why we put so much into helping them survive the pandemic and honestly, it’s why we’re being so rigorous on passenger protection,” he said.

Up next for the Department of Transportation: rules for family seating fees, upgrading rights to passengers in wheelchairs and mandating amenities for severely delayed or canceled flights.