New Policy Requires Airlines To Give Passengers Automatic Refunds
Rules for airline refunds are finally being standardized across the industry.
It has just been announced that a rule has been put into place by the Department of Transportation with a goal to standardize the refund process for travelers. The new rule makes it easy for passengers to obtain refunds when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased.
For the first time in industry history, ‘significant changes’ is defined, no longer leaving passengers guessing if they qualify for a refund or not. They also won’t have to settle for a voucher when they’re entitled to cash. This is huge news for the travel industry.
Across the board, if a flight is cancelled or significantly delayed by an airline due to reasons deemed by avoidable by the DOT, than travelers are entitled to compensation. Many people don’t know the rules around what qualifies for a refund or credit and what doesn’t. That’s because each airline is able to create their own rules and policies around the criteria for this making it really difficult to follow.
That’s why this new rule is a game changer. It does away with all of that. Moving forward, there will be industry standards set and when a flight meets that criteria an automatic refund is provided. It’s easy and clear and does not require the already inconvenienced traveler to have to worry about waiting on hold with the airlines or getting their money back promptly.
How will the new refund policy work?
Effective June 25, 2024, if a flight meets the qualifications then airlines must issue automatic refunds in the defined period of time to the original form of payment. As long as passengers do not accept any changes or or alternative transportation offered, they will qualify.
How long will it take to get a refund?
The new rule requires a refund within seven business days of the cancelled flight for credit card purchases and 20 calendar days for other payment methods like miles or points.
What disruptions qualify for these refunds?
According to the Department of Transportation:
Canceled or significantly changed flights: departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.
Significantly delayed baggage return: Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.
Extra services not provided: Passengers will be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service.
This push will not only to empower travelers, but will also address the number of complaints received annually to the DOT around refunds and refund procedures. These new rules will make it easier for those working at the airlines to assist travelers with refunds and changes by automating these policies.
