In a significant move towards enhancing consumer protections in air travel, the U.S. Department of Transportation (DOT) has issued a final rule that mandates airlines to provide automatic cash refunds to passengers when their flights are canceled or significantly changed[4]. This rule also applies when airlines significantly delay the return of checked bags or fail to provide the extra services that passengers purchased[4].
Automatic and Prompt Refunds
Under the new rule, airlines are required to issue refunds automatically, without passengers having to explicitly request them[5]. The refunds must be issued promptly within seven business days for credit card purchases and within 20 calendar days for other payment methods[5].
Refunds in Original Form of Payment
The refunds must be provided in cash or the original payment method that the individual used to make the purchase[5]. This ensures that passengers receive their refunds in a form that they can readily use.
Significant Changes to Flights
Significant changes to a flight that warrant a refund include changes in departure or arrival times of more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability[4].
Significantly Delayed Baggage Return
Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight[4].
Refunds for Extra Services Not Provided
Passengers will also be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service[4].
The new rule aims to make it simple and straightforward for passengers to receive the money they are owed[5]. It represents a significant step towards enhancing consumer protections in air travel[5]. As the rule comes into effect, it will be interesting to see how it impacts the airline industry and the overall passenger experience.