Automatic Refunds for Significant Flight Disruptions: New Airline Rule Goes Into Effect

29.10.2024 - 16:41 / nytimes.com / Pete Buttigieg

The Transportation Department’s new rule requiring airlines to provide prompt, automatic refunds to passengers enduring significant flight disruptions is now in effect.

The rule is intended to hold airlines to clear and consistent standards when they cancel, delay or substantially change flights, and require automatic refunds to be issued in cash, or the original form of payment, within 20 days or less, Transportation Secretary Pete Buttigieg said in a statement in April, when the agency issued the new rule.

“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Mr. Buttigieg said.

Here’s what you need to know about the D.O.T.’s new rule, which went into effect on Oct. 28.

Until now, airlines have been allowed to set their own definition for what constitutes a “significant” delay and passenger compensation has varied by carrier. Now, according to the D.O.T., there will be one standard: when departure or arrival is delayed by three hours for domestic flights and six hours for international flights.

When things go wrong, getting compensation from an airline has often required establishing a cumbersome paper trail or spending untold hours on the phone. Under the new rules, refunds are to be automatic, without passengers having to request them. Refunds will be made in full, excepting the value of any transportation already used. Airlines and ticket agents must provide refunds in the original form of payment, whether by cash, credit card or airline miles. Refunds are due within seven days for credit card purchases and within 20 days for other payments.

The list of significant changes for which passengers can get their money back also includes: departure or arrival from an airport different from the one booked; connections at different airports or flights on planes that are less accessible to a person with a disability; an increase in the number of scheduled connections. Also, passengers who pay for services like Wi-Fi or seat selection that are then unavailable will be refunded any fees.

Checked fees for luggage missing for more than 12 hours for a domestic flight, or 15 hours after an international flight, will be automatically refunded. This will not be automatic: Passengers must first file a mishandled baggage report.