US airlines need to automatically refund travelers for canceled, 'significantly changed' flights
The Biden administration's new rules, which require automatic cash refunds for canceled or significantly delayed flights, took effect this week.
"Passengers deserve to get their money back when an airline owes them—without headaches or haggling," Transportation Secretary Pete Buttigieg posted on X.
In April, the U.S. Department of Transportation said it was issuing an automatic refund rule, which explicitly defines the specific circumstances in which airlines must provide refunds.
Prior to this rule, airlines set their own standards for when a passenger was warranted a refund, and policies differed between carriers, making it difficult for "passengers to know or assert their refund rights," the DOT said.
Travelers ahead of a winter storm at Detroit Metropolitan Wayne County Airport in Detroit, Michigan, on Dec. 22, 2022. (Matthew Hatcher/Bloomberg via Getty Images / Getty Images)
Now that it has taken effect, passengers will have an easier time obtaining refunds in the event that an airline cancels or significantly changes a flight, significantly delays their checked bags or fails to provide the extra services they purchased.
When are passengers entitled to an automatic refund?
Canceled or significantly changed flights:
Under the new policy, passengers will receive a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered.
According to the DOT, a "significant change" is defined as a situation where a flight's departure or arrival time is altered by more than three hours domestically and six hours internationally.
Travelers wheel luggage toward a Spirit Airlines check-in desk at George Bush Intercontinental Airport, on Nov. 21, 2023, in Houston. (Jason Fochtman/Houston Chronicle via Getty Images / Getty Images)
This definition also includes changes in departure or arrival airports, an increase in the number of connections or connections at different airports.
It also applies in cases when a passenger is downgraded to a lower class of service or if flights are switched to planes that are less accessible or accommodating to a person with a disability, according to the rules.
Significantly delayed bag return:
Passengers that file a mishandled baggage report can get a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate.
For international flights, passengers will be refunded if the bag doesn't arrive between 15 and 30 hours of their international flight arriving at the gate, depending on the length of the flight.
Extra services that are not provided:
Passengers can be refunded if they paid for a service, such as Wi-Fi, seat selection or inflight entertainment that the airline failed to provide.