The Department of Transportation’s new refund rule for air travelers is now fully in effect. If your flight is canceled or delayed by more than three hours for a domestic itinerary, or six hours for an international itinerary, you’re automatically entitled to a refund. “Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement when the regulation was announced this spring. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Some parts of the DOT’s new rule went into effect as early as May when the Federal Aviation Administration’s funding was reauthorized, but some of the provisions had a longer lead time for implentation. Buttigieg underscored what the new rules would mean for travelers and airlines in a letter to aviation executives in July.
Here’s what travelers need to know about how the new rule works and what it entitles them to.
Refunds for canceled flights
Even before the new rule was announced, the DOT required airlines to provide refunds to travelers whose flights were canceled, so long as they chose not to take alternative flights offered by the airline.
The DOT’s policy clarifies how and when these refunds need to be processed. Under the latest guidelines, an airline must provide the refunds automatically, without passengers specifically requesting them. Airlines and ticket agents are also required to complete the refund within seven days for credit card purchases, and 20 days for other forms of payment.
The refunds must be made to the original form of payment – they cannot be covered by airline vouchers or credits if the tickets weren’t paid for that way. And, the refunds must cover the full, unused value of the ticket. Airlines will not be required to issue refunds for segments of an itinerary that were already flown before the trip was canceled.
Refunds for delayed flights
The bigger change to the DOT’s policy is how it clarifies what counts as a significant delay. Where the previous policy was ambiguous, the new rule specifies that delayed flights become refund-eligible after three hours for a domestic itinerary or six hours for an international itinerary. These time limits apply both to departure and arrival delays.
The policy also covers “significantly changed” flights, which the DOT explains means “departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.”
All of the refund guidelines for cancellations also apply to delayed flights. That is, the refunds must be issued automatically, in full, to the original form of payment. And as with cancellations, travelers only qualify to get a refund for a delay if they choose not to travel on the delayed flight or an alternate itinerary if the airline offers one.
Refunds for baggage issues
Passengers are now also entitled to get checked bag fees refunded if their luggage does not arrive in a timely manner at their destination. Under the DOT’s new rule, bag fees become refundable for passengers who file a mishandled baggage claim if their luggage isn’t delivered within 12 hours on a domestic itinerary, or 15-30 hours on an international itinerary, depending on the length of the flight.
Airline fee reimbursements
The DOT’s rule also requires airlines to issue refunds for fees like inflight Wi-Fi, seat selection or inflight entertainment if the passenger paid for such a service but it was non-functional or unavailable during their flight.
Medical and government travel exemptions
Passengers will soon also be entitled to airline credit valid for at least five years from the issue date if they are restricted by a government or advised by a medical professional not to travel because they have been diagnosed with a serious communicable disease after booking a flight. The DOT’s policy said airlines can require passengers applying for this credit to provide documentary evidence to support their request. This part of the policy doesn’t fully take effect until May.
