Airlines Now Must Issue Automatic Refunds for Flight Changes—Here’s What Qualifies
Plus, learn how you can also receive a fee refund from an airline for your delayed luggage
Though traveling can be a great experience, things can quickly sour when you’re stuck dealing with a canceled flight, a delay or even missing luggage. That frustration is then amplified when you don’t receive your refund in a timely manner and must nag your airline to get what is owed to you. Luckily, that will no longer be the case, as new rules will ensure the companies take responsibility and keep customers satisfied. Below you’ll find out more about the new airline automatic refund rules, what circumstances allow you to qualify and when to expect your money back.
What is the airline automatic refund rule?
On Monday, October 28, new rules established by the U.S. Department of Transportation (DOT) went into effect to benefit air travelers. These rules ensure that customers who are impacted by travel delays are automatically entitled to a refund from the airline.
According to The Washington Post, the law requires that airlines offer refunds rather than vouchers or credits. The key is that the companies are proactive—the customers shouldn’t have to ask for it.
Why did the airline automatic refund rule go into effect?
The DOT announced the travel rules back in May as a step towards protecting consumers who utilize air travel. “Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement at the time, reports USA Today. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
That’s also when President Joe Biden signed the Federal Aviation Administration reauthorization bill into law. Some aspects of the new rule went into effect at the time, but airlines were given a bit more grace for implementing the changes. They were simply required to issue refunds to travelers who had their flights canceled. Now they must do so in a timely manner, as clarified by the updated policy.
How to qualify for the refund
Since this new law was signed to prompt airlines to be proactive in their refunds, you won’t need to request a refund and the airline will handle it automatically. The only caveat is you need to qualify for the automatic refund, which can happen because of three different scenarios.
The first: Your flight is canceled or significantly changed. For a domestic flight, this means a delay of three or more hours, and six or more hours for an international flight. These include changes impacting your arrival or departure.
However, if part of an itinerary was flown before your trip was canceled, you will not be entitled to a refund. You are also not eligible if you choose to take an alternative flight offered by the airline.
Not every qualifying change involves a delay. Other travel disruptions also qualify. The second rule says that the DOT refund rule applies to other adjustments, as well. These include departures or arrivals being moved to another airport, an increase in the number of connections, being downgraded to a lower class of service than you paid for and being moved to a different airport or plane that is less accessible or accommodating if you have a disability.
Surprisingly, smaller hassles impacting your flight experience count towards reimbursement too. For example, if you paid a fee for inflight entertainment, seat selection or WiFi and the airline can’t deliver, expect to get a refund for that cost.
Finally, a headache with delayed luggage can also get you a refund, reports ThePointsGuy.com. You’ll be entitled to your money back from the checked bag fee if your luggage is not delivered within 12 hours after the arrival of a domestic flight or 15 to 30 hours for international arrivals.
In this case, you do need to work with the airline so they know you are missing your belongings. Just file a mishandled baggage report with the airline at your arrival airport, and you will be then entitled to a timely refund. (Want to avoid checked luggage next time? Learn how to effectively pack your carry-on).
When to expect your automatic airline refund
Now that the parameters have been set regarding the definition of a “significant” travel change, airlines are also required to issue your refund promptly. Thanks to the new rule, the money is due to customers within seven business days if the ticket was purchased using a credit card and within 20 business days if it was acquired via other means. Again, this needs to be done without passengers having to specifically request their money back.
Vouchers, credits or other forms of compensation are not acceptable alternatives for these refunds either, unless the customer willingly accepts. If you don’t want to take these options, then the airline must cover the full, unused value of your ticket.
While compensation may not change the fact that you were inconvenienced during your travels, not having to jump through hoops to get that money back can definitely soften the blow!
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