Have you ever had to endure long wait times or fill out tons of paperwork to get a cancelled flight refunded?
To combat complicated refund processes, the Biden administration is rolling out new rules to make it easier and faster to get your money back when a flight doesn't go as planned.
Here’s an overview of the new rules, according to the Department of Transportation (DOT):
Automatic refunds
You’ll get an automatic cash refund if:
- Your flight is cancelled or significantly changed, and you do not accept alternative transportation or travel credits
- You have significant delays getting your checked bags
- You don’t receive other services you paid for, like Wi-Fi, for example
DOT defines "significantly delayed" as departure or arrival times that are delayed by more than 3 hours domestically and 6 hours internationally.
Significant changes that qualify for a refund include the following, according to DOT:
- Departures or arrivals from a different airport
- Increases in the number of connections
- Downgrades to a lower class of service
- Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability
The “automatic refund” means you won’t have to make requests or “jump through hoops,” like filling out extensive online paperwork, to get your money back.
The refund must be worth the full amount the customer paid. It's considered a "cash" refund because it cannot be in the form of a voucher. Refunds must be issued within seven business days for credit card purchases and 20 calendar days for other payment methods.
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Surprise fees
Airlines and ticket agents must tell customers upfront--before they buy a ticket--if they charge a fee for the following:
- Checked bags
- A carry-on bag
- Changing and/or cancelling a reservation
DOT says this aims to inform flyers what the total cost of their trip will be. The department said, for example, this will prevent consumers from buying what they think is a cheap flight, only to be responsible for a slew of extra fees.
Airlines and ticket agents will also be responsible for explaining that seats are guaranteed.
DOT says the new rules will save flyers over half a billion dollars every year in airline fees.
The changes will go into effect over the next year, with some being implemented as soon as six months from now, DOT says.
