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New DOT regulation requires refunds for airline delays and cancellations
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New DOT regulation requires refunds for airline delays and cancellations

Canceled and delayed flights can quickly ruin any vacation, and getting compensation for those flights has long been just as stressful. For decades, refund rules in the United States have been ambiguous or vary wildly from airline to airline. But as of October 28, get a refund It became much simpler.

The Department of Transportation now requires airlines Provide automatic refunds if flights are canceled or significantly changed. That means no more arbitrary credits, vouchers, or miles to offset travel headaches. You have the right to receive cash. But there is a crucial caveat to the rule. You can only receive an automatic refund if you refuse to allow the airline to rebook you on another flight or accept another form of compensation.

“When these new regulations were first discussed, many outlets reported it as ‘Great, you can get a refund now and your flight will be rebooked.’ Unfortunately, it’s both or it’s not,” said Katy Nastro, a spokesperson for the travel website. Going.com. “You either accept the rebooking that the airline presents or you get a refund.”

The regulation applies to domestic and foreign airlines and states that a full refund must be given if a traveler is “not offered or refused alternative transportation and travel credits, vouchers or other compensation.”

The new rules use the term “significant change” instead of delay. That term covers:

  • Changes in departure or arrival times of more than 3 hours for domestic flights and 6 hours for international flights.
  • Departures or arrivals from a different airport.
  • Increases in the number of connections.
  • Cases in which passengers are downgraded to a lower class of service.
  • Connections at different airports or flights on different planes that are less accessible or adapted to a person with a disability.

One of the biggest advantages for travelers with the new regulations is that the DOT has eliminated weather as an “uncontrollable factor.” That means airlines can’t refuse a refund because bad weather delayed or canceled a flight. If your flight is canceled for more than 3 hours (6 for international flights) due to weather and you do not accept an airline alternative, you are entitled to a full refund.

Even better, airlines should automatically process the refund. Consumers are not required to request it or complete paperwork. Additionally, airlines must issue refunds within seven business days for credit card purchases and 20 calendar days for other payment methods.

Refunds also apply to checked baggage fees. Travelers who file a mishandled baggage report may receive a refund of the checked baggage fee if the baggage is not delivered within 12 hours of their domestic flight’s arrival at the gate or between 15 and 30 hours after arrival of your international flight at the gate. You’ll also be entitled to a refund if you pay for Wi-Fi, seat selection or in-flight entertainment and the airline doesn’t deliver.

“I think a lot of people just assumed that a refund wasn’t an option,” Nastro said. “In addition, consumers should know that they have the right to apply for a travel credit. There is no need to request a refund if you want a travel credit. Part of the new rules is that travel credits are now valid for five years.”


You can contact Christopher Muther at [email protected]. follow him @Chris_Muther and Instagram @chris_muther.