(5MinNewsBreak.com) – The Department of Transportation has issued a new refund rule for significant flight delays and cancellations, forcing airlines to provide automatic refunds.
Under the new rule, passengers are now entitled to refunds if their flights are canceled or delayed by more than three hours for domestic flights or six hours for international flights.
Airlines must process these refunds automatically, without passengers needing to request them.
The regulation requires airlines to complete refunds within seven days for credit card purchases and 20 days for other payment forms.
These refunds must be made to the original form of payment and cover the full, unused value of the ticket.
The policy also covers significantly changed flights, such as changes in airports, connections or class of service.
Additionally, passengers are entitled to refunds for checked bag fees if luggage is delayed beyond 12 hours domestically or 15-30 hours internationally.
Airlines must even refund fees for services like inflight Wi-Fi or seat selection if they were non-functional during the flight.
Transportation Secretary Pete Buttigieg said in a statement, “Passengers deserve to get their money back when an airline owes them – without headaches or haggling. Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
It is worth noting that this regulation also includes a provision for passengers restricted from traveling due to a serious infectious disease. They can receive airline credit valid for at least five years, effective from May.
Passengers deserve to get their money back when an airline owes them—without headaches or haggling. Today, our automatic refund rule goes into full effect. Airlines are required to provide prompt cash refunds without passengers having to ask. pic.twitter.com/otIvRaGJxC
— Secretary Pete Buttigieg (@SecretaryPete) October 28, 2024
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