This is a major change—and a big deal for passenger rights—because previously, the government left it up to the airlines to choose for themselves what they considered a long enough delay to warrant a refund. (Meaning, they weren’t given often.)
In another win for travelers, the DOT has spelled out how refunds must be issued. The refunds must be automatically issued “without passengers having to explicitly request them or jump through hoops.” They must also be prompt, given within seven business days for credit card purchases and 20 calendar days for other methods of payment. The refunds must equal the full amount a customer paid, including taxes and fees, minus any used portion of the ticket.
Refunds for late luggage
But it’s not just flight disruptions that are eligible for refunds under the new rules. It applies to baggage delays, too. Fliers who file a mishandled baggage report with the airline and whose delayed luggage isn’t delivered to them within 12 hours of their domestic flight or 15 to 30 hours of their international flight (depending on the flight’s length) can receive a full refund of their baggage fee. And those fees can add up—as travelers are well aware—especially in light of this year’s widespread checked bag fee increases.
Refunds for in-flight services
Passengers are also now entitled to automatic refunds for in-flight services they paid for but the airline failed to provide. These charges include services like seat selection, in-flight WiFi, and in-flight entertainment purchases. If you pay for one of these add-ons and it’s not provided (for example, if the WiFi doesn’t work, or you don’t get the seat you paid for) you will be refunded for those services.
Refunds for when you’re sick
The new regulations also lay out a framework for travelers to be protected if they can’t travel due to “a serious communicable disease” such as COVID-19. If a country or medical professional advises passengers not to travel to, from, or within the US for this reason, airline customers will be entitled to a travel voucher or airline credit that’s valid for at least five years. Unlike the above refund scenarios, airlines may require passengers to submit additional documentation in order to receive this compensation.
These protections are designed to prevent issues that arose during the pandemic from repeating themselves. In 2020, many passengers whose flights were canceled due to travel restrictions struggled to get a cash refund from their airline. Airlines were later collectively fined $7.5 million by the DOT for delaying the refunds and forced to issue $600 million back to customers.
What else to know
Overall, the new rule is meant to streamline the refund process for all of these services and flight disruptions. “Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund—searching through airline websites to figure out how [to] make the request, filling out extra ‘digital paperwork,’ or at times waiting for hours on the phone,” the DOT’s statement says.
On top of this, airlines must now issue notifications to fliers who are affected by delays and cancellations that state their right to a refund of their ticket price and extra service fees.
If travelers believe their airline is not following the new refund rules, they can always file a consumer complaint with the DOT. These complaints helped fuel the record amount of passenger refunds during the COVID pandemic, as well as the $164 million in penalties that Buttigieg has charged against airlines for consumer violations during his tenure. So rest assured that the agency does read them and act on them.
