The Biden-Harris Administration yesterday announced a new US Department of Transportation (DOT) ruling that promises to speed up and simplify travelers’ refunds for canceled flights and lost luggage.
When a passenger cancels a flight after it is delayed more than three hours for a domestic flight or six for an international flight, or its arrival or departure airport is changed, the new ruling requires that airlines issue an automatic credit card refund for the fare and taxes within seven days, without any action required by the passenger. Passengers who pay in cash must be compensated within 20 days.
Also covered are refunds for cancellations due to passengers being downgraded to a lower class of service or put on a plane that is less accessible, or if they do not get the promised Wi-Fi, seat selection or inflight entertainment.
Passengers who file a mishandled baggage report, meanwhile, will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.
Airlines must provide “prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.”
And in instances where consumers are restricted by a government or advised by a medical professional not to travel to, from, or within the United States due to a serious communicable disease, the rule requires airlines to provide transferrable travel credits or vouchers good for at least five years.
“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” said US Transportation Secretary Pete Buttigieg.
All 10 major US airlines already guarantee free rebooking and meals, and nine guarantee hotel accommodations, when an airline issue causes a significant delay or cancellation. And while your flight might have been canceled, the flight cancellation rate in the United States hit a record low of 1.2% in 2023, the lowest rate in more than 10 years despite a record amount of air travel.
The Biden administration also is working on proposals to ban extra fees for family seating (already guaranteed by four airlines) and to expand the rights of passengers who use wheelchairs.
The final rule on refunds can be found at https://www.transportation.gov/airconsumer/latest-news and at regulations.gov, docket number DOT-OST-2022-0089. Information about airline passenger rights, as well as DOT’s rules, guidance and orders, can be found at https://www.transportation.gov/airconsumer. And information on travelers rights is available at flightrights.gov.
