The Department of Transportation‘s new guidelines, going into effect today, will allow for faster refunds from airlines for customers whose travel plans have been disrupted.
Under the new rules, if flights are canceled or significantly changed; bags significantly delayed; or extra services were not provided that were paid for, airlines must promptly provide passengers with an automatic cash 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. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Airlines are notorious for their byzantine bureaucracy, with customers having to navigate labyrinthine procedures to obtain refunds.
Now, if your flight is delayed by more than three hours for domestic flights, or six hours for international, you are entitled to a full refund. If your flight is canceled you are also entitled to a full refund, unless you don’t accept an alternate flight from the airline.
Refunds must be issued by the airline no more than seven days after the scheduled travel for credit card payments, and no more than 20 days for other forms of payment.
Customers are also entitled to refunds if there are “significant changes” to the itinerary, including a change of airports, or flight changes that result in less disability access. Those who experience do not receive their checked luggage on time are also entitled to a reimbursement.
Finally, those who buy their tickets and then are told by a medical professional they cannot travel due to a disease will be entitled to an airline credit.
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The efficiency of airlines came under national scrutiny in December 2022, when a computer system failure from Southwest Airlines resulted in over 15,000 cancelations during the busiest time of the year. It reported an $800 million loss in revenue a month due to the crisis.
The December meltdown dealt a major blow to the airline’s reputation as well, drawing national headlines and the ire of the DOT. The airline was made to compensate all the customers affected by the winter delays, which included paying for hotel rooms of customers stranded at airports, transportation to and from the hotel, meals, and numerous other expenses resulting from the delay. In December 2023, the airline was fined another $140 million.