The new rule was announced earlier this year and recently took effect. It’s intended to hold airlines accountable when they cancel, delay or significantly change a flight’s schedule.
When things go wrong, the new rules require airlines to issue automatic refunds in the original form of payment, whether that’s cash, credit card or frequent flier miles.
Refunds are due within a week for credit card purchases and within 20 days for other forms of payment.
“Passengers deserve to get their money back when an airline owes them - without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Previously, airlines had been allowed to individually determine whether delays were “significant” or not. Now all must follow the new transportation department definition. It defines a “significant delay” as a departure or arrival delayed by three hours for domestic flights and six hours for international flights.
The new airline rule, crafted by the Biden-Harris administration, also requires refunds for other services. If customers pay for Wi-Fi or seat selection, and it ends being unavailable, the airline must issue an automatic refund.
Additionally, passengers with delayed luggage can get checked bag fees refunded. Refunds are available if luggage is missing more than 12 hours after a domestic flight, or 15 hours for an international flight. However, to qualify for a refund, passengers must fill out a mishandled baggage report online.
Passengers can report airlines that don’t follow the new rules to the Department of Transportation online.
