Airlines Must Now Automatically and Promptly Refund Passengers for Flight Changes

Airlines are now required to promptly offer automatic cash refunds in various situations, according to the U.S. Department of Transportation's (DOT) final rule. This rule, introduced by the Biden-Harris Administration, aims to establish clear guidelines for when refunds must be provided, creating certainty for consumers. Prior to this rule, refund policies varied widely among airlines, leading to confusion and frustration for passengers.

Under the new rule, passengers are entitled to a refund in the following circumstances:

• When flights are canceled or significantly changed, including changes in departure or arrival times, airports, connections, or class of service.

• When checked bags are significantly delayed, with specific timeframes outlined for domestic and international flights.

• When extra services, such as Wi-Fi or seat selection, are not provided after being paid for by the passenger.

Notably, the rule mandates that refunds must be automatically issued by airlines without passengers needing to request them. Refunds must be provided within specific timeframes, with cash refunds offered in the original payment method used by the passenger. Vouchers or travel credits are no longer permitted as forms of compensation, except at the passenger's discretion. Additionally, full refunds must be given, minus the value of any portion of transportation already used.

Furthermore, the rule extends refund rights in cases where passengers are advised not to travel due to a serious communicable disease or other restrictions. The DOT is also considering additional measures to address family seating fees and enhance the rights of passengers with disabilities.

It's worth noting that the rule mentions "airlines and ticket agents" being responsible for refunds, though clarification is needed regarding the definition of "ticket agents." The DOT is seeking further input from industry stakeholders on this matter.

Overall, these new regulations aim to provide greater clarity and protection for air passengers, ensuring fair treatment and transparency in refund policies across the airline industry.