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Published on November 04, 2024
New DOT Rule Mandates Full Refunds for Significant Flight Delays and Cancellations Ahead of Holiday Travel SurgeSource: Unsplash/Jon Tyson

Air travelers weary of the maze of uncertainty when flights go awry now have a clearer path ahead, thanks to a new rule that insists airlines refund passengers for significant delays and cancellations. The latest imposition by the Department of Transportation, which leveled the playing field as of this week, requires U.S. airlines to issue refunds, not just travel vouchers, for these disruptions. The change comes just before a wave of holiday travel is expected to hit airports across the nation.

“When an airline knows that all — instead of just a few of the passengers on a canceled flight — are likely to actually get their money back, it gives them a different set of reasons to put in the investment, and the realistic scheduling that makes those cancellations less likely to happen to begin with," Department of Transportation Secretary Pete Buttigieg said Wednesday when the rule went into effect, as reported by CBS News. This decree sets definitive terms for what's considered a "significant" delay—three hours or more for domestic flights and six or more for international—and also covers changes such as shifts in airports or the addition of connections. Moreover, according to CW39, customers who paid via credit card must be refunded within seven business days of a flight cancellation.

The regulation extends beyond the predicament of cancellations and departure delays. For the first time, airline passengers will see automatic refunds for service downgrades, like being placed in a lower class than purchased or switched to aircraft unsuitable for passengers with disabilities. Checked baggage, which fails to arrive within a specific timeframe—12 hours for domestic and between 15 to 30 hours for international travel—will likewise be eligible for a refund of any corresponding fees, contingent upon a mishandled baggage claim being filed.

Even niggling annoyances like non-functional Wi-Fi or not being seated in the pre-selected spot now come with a refund guarantee. However, such fees are decidedly lesser than that of the flight itself. Illustrating the levity this rule brings to an otherwise murky process, the Department of Transportation’s website states, “Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund,” including wading through airline websites, filling out extra 'digital paperwork’, or enduring lengthy waits on the phone, as detailed by CBS News.

Houston-Transportation & Infrastructure