Airlines have now been told they must make automatic refunds under a new Department of Transportation rule that went into effect this week.
Travelers are now guaranteed money back if a flight is delayed or cancelled, and no paperwork will be required.
Department of Transportation Secretary Pete Buttigieg said Wednesday that the new regulation is an attempt to incentivize airlines to minimize disruptions, delays or cancellations.
Airlines have now been told that automatic refunds should be issued for any “significant changes” to a flight.
“When an airline knows that everyone, rather than just a few passengers on a canceled flight, is likely to get their money back, it has a different set of reasons to make the investment and realistic scheduling that makes those cancellations less costly. To begin with, this is likely to happen,’ he said when the new regulation was announced.
With the new regulation also comes a strict definition of what constitutes a “significant change,” which used to vary from airline to airline.
Under the new law, a “significant change” will be defined as any change to a flight that includes a delay of three hours or more for domestic flights and at least a six-hour delay for international flights.
An automatic refund will also be issued if a passenger is downgraded to a lower class of service or to an aircraft that is less accommodating for a passenger with a disability.
Any change to a flight’s departure or arrival airport or if a connection is added will also result in an automatic refund. Just as if a passenger paid to select a particular seat but was forced to sit somewhere else.
If checked baggage is not delivered within 12 hours of a domestic flight or within 15 to 30 hours of an international flight arriving at their gates, under the new regulation, airlines must now refund check-in fees. checked baggage paid for by passengers.
However, any baggage claim refund will require the passenger to first file a mishandled baggage report with an airline.
It also applies to any traveler who has used and paid for airline Wi-Fi. If passengers pay for the onboard service and it does not work correctly, they will be refunded the cost of the service.