As holiday travel ramps up, it's time to review the new federal rules governing refunds for travel disruptio. The rule was announced in April 2024 to make it easier for airline passengers to get refunds for cancelled or significantly changed flights.
Key Highlights of the Rule
Automatic Refunds: Airlines must provide refunds automatically when passengers are owed one—no need to request it.
Clear Standards for Refunds: Passengers are entitled to refunds in the following situations:
- Flight Cancelled: If the airline cancels your flight and doesn’t rebook you, or you decline rebooking or other compensation.
- Significant Changes to Flight: If your flight is significantly changed, such as:
- Departure/arrival time changes (3+ hours for domestic, 6+ hours for international).
- Airport changes or added connections.
- Downgrades to a lower class of service.
- Baggage Delays: Refunds for checked bag fees if luggage is delayed more than:
- 12 hours (domestic flights).
- 15-30 hours (international flights, depending on length).
- Extra Services Not Provided: Refunds for services like Wi-Fi or seat selection if they aren’t delivered.
Prompt Refunds: Airlines must issue refunds:
- Within 7 business days for credit card purchases.
- Within 20 calendar days for other payment methods.
Refund Methods:
- Refunds must be in cash or the original form of payment, unless the passenger opts for alternatives like travel credits.
- Vouchers or credits must be valid for at least 5 years if chosen.
Full Refund Amounts: Refunds include the ticket price and all taxes and fees, minus any travel already completed.
Additional Information
- Passengers are not entitled to refunds if they accept rebooking or continue with a significantly changed itinerary.
- Airlines must notify passengers of their refund rights for cancelled or significantly altered flights.
This rule shifts the responsibility to airlines, ensuring passengers receive fair and prompt refunds without navigating complicated processes.