Automatic refunds are now required for delayed and canceled flights.

The U.S. Department of Transportation’s new refund rule for airline passengers requires automatic refunds for significantly delayed or canceled flights.
Domestic flights delayed by three hours or more and international flights delayed by six hours or more are eligible for a full refund.
Airlines must issue refunds within seven days for credit card purchases and 20 days for other forms of payment.
The rule also requires refunds of checked baggage fees if the baggage is not delivered within the specified time frame, as well as for non-working or unavailable paid services such as Wi-Fi.

The Department of Transportation’s new refund rule for airline passengers is now fully in effect.

If your flight is canceled or delayed by more than three hours for a domestic route or six hours for an international route, you are automatically entitled to a refund.

“Passengers deserve to get their money back when the airline owes them, without the headaches and haggling,” Transportation Secretary Pete Buttigieg said in a statement when the ruling was announced this spring. “Our new rule sets a new standard by requiring airlines to promptly issue refunds to their passengers.”

Some parts of the new DOT rules went into effect as early as May when the Federal Aviation Administration reauthorized funding, but some provisions had a longer timeline for implementation. Buttigieg emphasized what the new rules would mean for travelers and airlines in a letter to airline industry executives in July.

Here’s what travelers need to know about how the new rule works and what it does for them.

Refunds for canceled flights

Even before the new rule was announced, the DOT required airlines to provide refunds to travelers whose flights were canceled if they chose not to take alternative flights offered by the airline.

DOT policy explains how and when these refunds must be processed. According to the latest rules, the airline must provide refunds automatically, without a special request from passengers. Airlines and ticket agents are also required to complete refunds within seven days for credit card purchases and 20 days for other forms of payment.

Refunds must be made in accordance with the original form of payment – they cannot be covered by airline vouchers or credits if the tickets were not paid for in this way. However, the refund must cover the full unused cost of the ticket. Airlines will not be required to provide refunds for route segments that were already flown before the trip was cancelled.

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Refund for flight delay

The bigger change in DOT policy is how it clarifies what is considered a significant delay. Where the previous policy was ambiguous, the new rule determines that a flight delay will entitle you to reimbursement after three hours for a domestic route or six hours for an international route. These time restrictions apply to both departure and arrival delays.

The policy also applies to “significantly modified” flights, which the DOT explains means “departing or arriving from another airport; increasing the number of connections; cases of passengers being downgraded to a lower class; or connections at different airports or flights.” on different plans that are less accessible or accommodating to a person with a disability.”

All cancellation refund policies also apply to delayed flights. That is, refunds must be made automatically in full to the original form of payment.

Refunds for problems with luggage

Passengers are now also entitled to a refund of checked baggage fees if their baggage does not arrive at its destination on time. Under the new DOT rule, baggage fees will be refunded to passengers who file a baggage mishandling claim if their baggage is not delivered within 12 hours on a domestic route or within 15 to 30 hours on an international route, depending on flight length. .

Airline Fee Reimbursement

The DOT rule also requires airlines to refund fees such as in-flight Wi-Fi, seat selection or in-flight entertainment if a passenger paid for such a service but it did not work or was unavailable during the flight.

Exemption from medical and government travel

Passengers will soon also be eligible for an airline credit, valid for at least five years from the date of issue, if they have been restricted by the government or advised by a health professional not to travel because they were diagnosed with a serious infectious disease after booking a flight. DOT policy states that airlines may require passengers applying for this credit to provide documentary evidence to support their request. This part of the policy will not take effect until May.

Zach Wichter is a travel reporter for USA TODAY based in New York. You can contact him at [email protected].