Transportation Secretary Pete Buttigieg announced the new rules Wednesday.
Good news for airline travelers: the Department of Transportation on Wednesday is rolling out new rules that will require airlines to automatically give cash refunds to passengers for canceled and significantly delayed flights.
The delays covered would be more than three hours for domestic flights and more than six hours for international flights, the agency said. This includes tickets purchased directly from airlines, travel agents and third-party sites such as Expedia and Travelocity.
DOT will also require airlines to give cash refunds if your bags are lost and not delivered within 12 hours.
Airlines will have six months to comply with the new rules, DOT said.
“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” said Transportation Secretary Pete Buttigieg in a statement. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Buttigieg will make a formal announcement abut the major changes at a Wednesday morning news conference.
The DOT said it is also is working on rules related to family seating fees, enhancing rights for wheelchair-traveling passengers for safe and dignified travel and mandating compensation and amenities if flights are delayed or canceled by airlines.
According to DOT, passengers are entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered. Also included are the significantly delayed baggage return and extra services paid for and not provided, such as Wi-Fi, seat selection or inflight entertainment.
In a statement to ABC News, Airlines for America, the trade association for the country’s leading passenger and cargo airlines said, “A4A members offer a range of options — including fully refundable fares.” Is said consumers are “given the choice of refundable ticket options with terms and conditions that best fit their needs at first search results.”
According to their data, A4A member carriers issued $43 billion in customer refunds between the years 2020-2023.
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
