The U.S. Department of Transportation (DOT) has implemented new rules that require airlines to automatically provide cash refunds for canceled flights or significant delays. The rule applies to flights delayed by over three hours for domestic travel and over six hours for international travel. Refunds are mandatory when passengers do not accept alternative arrangements like travel credits, and they must be issued promptly within seven days if the ticket was purchased by credit card, or within 20 days if bought through other payment methods.
The rule also ensures refunds for additional services, such as Wi-Fi or seat selection, if those services are not provided. Additionally, airlines must refund baggage fees if checked bags are delayed beyond 12 hours on domestic flights or up to 30 hours on international flights. This change aims to simplify the refund process and ensure greater consumer protection without requiring passengers to request refunds directly or face prolonged delays in reimbursement.
