US DOT says Airlines must now pay automatic refunds for cancelled flights

The U.S. Department of Transportation (DOT) has released a final regulation requiring airlines to quickly reimburse passengers with automatic cash refunds when owed, according to a statement made by the Biden-Harris Administration.

Under the new regulation, passengers will find it easier to get refunds when airlines dramatically alter or cancel flights, cause severe delays for checked baggage, or don’t supply the additional services they paid for.

According to a statement from the Biden-Harris Administration, the U.S. Department of Transportation (DOT) has published a final rule mandating airlines to promptly compensate customers with automatic cash refunds when they are eligible. The new rule would make it simpler for customers to receive refunds from airlines in cases when they drastically change or cancel flights, cause significant delays for checked luggage, or fail to provide the extra services they charged for.

Under the latest rule from the USDOT, passengers are guaranteed refunds in several scenarios:

1. Canceled or Significantly Changed Flights: Passengers are entitled to refunds if their flight is canceled or significantly altered, including changes in departure or arrival times exceeding 3 hours domestically or 6 hours internationally, departures or arrivals from different airports, increased connections, downgrades in service class, or changes less accommodating to passengers with disabilities.
2. Delayed Baggage Return: Passengers filing mishandled baggage reports can claim a refund for checked bag fees if their luggage is not returned within specific timeframes after flight arrival.
3. Unprovided Extra Services: If airlines fail to deliver paid extra services like Wi-Fi, seat selection, or inflight entertainment, passengers can request refunds for those fees.

The final rule streamlines the refund process, ensuring it is:

• Automatic: Refunds are issued automatically without requiring passengers to request them.
• Prompt: Airlines must refund credit card purchases within seven business days and other payment methods within 20 calendar days.
• In Original Form of Payment: Refunds are provided in the original payment method used for purchase.
• Full Amount: Passengers receive full refunds minus the value of any portion of transportation already used, including government and airline fees.

Suggest banning family seating junk fees and ensuring that parents can travel with their kids at no additional cost. No airline promised to ensure fee-free family seating prior to efforts from President Biden and Secretary Buttigieg last year. Family seating is now guaranteed free of charge on four airlines, and the Department is working on a plan to eliminate family seating junk fees.

Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.