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TRANSPORT

What are the new rules affecting flight refunds from the Department of Transport?

Thanks to a new rule from transport authorities, passengers can now expect a smoother path to getting their money back in a wide-range of situations.

Thanks to a new rule from transport authorities, passengers can now expect a smoother path to getting their money back in a wide-range of situations.
Leonardo BenassattoREUTERS

A new rule from the Biden-Harris Administration will make travel refunds far easier to secure than ever before, with new measures simplifying the process. The ruling requires airlines to automatically issue cash refunds to passengers when they are owed one. This eliminates the need for lengthy arguments or jumping through hoops to recover your hard-earned travel dollars.

“Passengers deserve to get their money back when an airline owes them - without headaches or haggling,” said US Transportation Secretary Pete Buttigieg. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

Previously, airline policies regarding refunds varied widely. Some offered vouchers or travel credits instead of cash, while others made the refund process cumbersome. This new rule streamlines the process and empowers passengers.

Here’s what flyers can expect under the new DOT rule

Airlines must automatically issue cash refunds to passengers without requiring them to explicitly request it. This applies to situations like:

Flight Cancellations: If your flight is cancelled, you’re entitled to a full refund regardless of the reason for cancellation. Significant

Delays: For domestic flights experiencing a delay of more than three hours, or six hours for international flights, you can request a cash refund.

Lost or Significantly Delayed Luggage: If your checked bag arrives more than 12 hours late on a domestic flight (or within the timeframe set for international flights), you’re entitled to a refund.

Unprovided Services: If you pay for in-flight services like Wi-Fi, seat selection, or meals that aren’t provided, you’ll get your money back.

Airlines are required to process refunds promptly. The timeframe depends on the payment method used, with seven business days for credit cards and 20 calendar days for other payment methods.

However, some limitations exist. The rule doesn’t apply to voluntary schedule changes passengers agree to in advance, nor does it dictate the specific amount of compensation airlines may offer for inconvenience caused by delays or cancellations.