The Dept. Of Transportation Lays Out Exactly When an Airline Owes You a Refund

24.04.2024 - 20:55 / travelandleisure.com / Pete Buttigieg / Airlines

The Department of Transportation (DOT) issued new rules Wednesday requiring airlines to disclose all fees upfront as well as “promptly” provide refunds when they are owed.

Under the new rule, travelers are entitled to a refund if an airline cancels or significantly changes their flight, like changing the departure or arrival time by more than 3 hours for domestic flights and 6 hours for international flights, the DOT shared with Travel + Leisure. Travelers can also demand a refund if an airline significantly delays their checked bags (more than 12 hours for domestic flights and 15 to 30 hours for international flights), or if the airline doesn’t provide the ancillary services a passenger purchased like Wi-Fi, seat selection, and in-flight entertainment.

Airlines will now be required to issue a refund automatically without a passenger having to request one. The refund must be in the form of cash or the original form of payment, and airlines cannot substitute travel vouchers or other forms of compensation unless the passenger willingly accepts it.

The new rules are part of the DOT’s ongoing effort to expand airline passenger rights and address so-called “junk fees.” They also spell out when travelers are owed a refund, taking it out of the airlines’ hands and making the policy the same for every carrier,

“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement shared with T+L. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

When it comes to surprise fees, the DOT will require airlines to tell travelers up front what they charge for a first or second checked bag, a carry-on bag, or for canceling or changing a reservation. The fees cannot be displayed through a hyperlink.

Buttigieg said the new rule “will save passengers over half a billion dollars a year in unnecessary or unexpected fees by holding airlines accountable for being transparent with their customers.”

The new rule does not address family seating fees, but the DOT said it plans to propose a separate rule tackling that. Last year, the DOT launched an online family seating dashboard laying out the policies of 10 major U.S. airlines.