New Rule Helps Travelers Get Refunds
During the holiday travel season, there will inevitably be delays and flight cancellations. But this year, there is a silver lining of sorts. Domestic airlines must now refund passengers in the event of major flight mishaps. A new U.S. Department of Transportation rule, which took effect in late October, allows passengers whose flights are cancelled or significantly changed to get a full refund without needing to ask for one. The law is also designed to spur airlines to minimize disruptions, according to U.S. Transportation Secretary Pete Buttigieg.
Federal officials say the new rule is necessary because in the years following the COVID-19 pandemic, there has been an increase in customer complaints against airlines and ticket agents who either delayed the refund process or refused refunds altogether. Passenger frustration was exacerbated this past July when a technology outage caused by cybersecurity company CrowdStrike caused over 10,000 cancellations worldwide, affecting 1.4 million passengers.
The new rule defines a significant change as a delay of more than three hours for domestic flights and six hours for international flights. Other scenarios leading to a refund include a change in the departure or arrival locations, an increase in the number of connections, a connection change to different airports or passengers being downgraded to a lower class of service. People with disabilities are entitled to a refund if the change in planes or airports is “less accessible or accommodating” to their disability.
The regulation also applies to a refund of the checked bag fee if baggage is lost for more than 12 hours domestically or 15 to 30 hours on an international flight.
There are some exceptions that would preclude people from getting refunds, including safety or security issues, air traffic and weather or natural disaster delays.
With the new regulation, ticket agents are required to issue refunds of the ticket price, minus the value of any portion already traveled, within seven days for credit card purchases and 20 days for other payment methods. It is still recommended to pay with a travel credit card with built-in insurance to be sure you’re fully covered.
