The Department of Transportation has announced that airlines will soon be required to cash refund passengers for cancelled and delayed flights automatically.
The new measure, which is expected to be implemented in six months, will also refund travelers who had to wait significant times for their flights, with all of those waiting for their flights for more than three hours, being eligible for compensation, VisaGuide.World reports.
In addition to cancelled and delayed flights, passengers will also be compensated for other inconveniences they encounter during their journey, including a non-working wifi connection.
New Rules Make US a Historical Leading Country for Passengers’ Rights
During Wednesday’s news conference, Transportation Secretary Pete Buttigieg pointed out how important the new rules are for the US and passenger rights in the country, considering it ‘historical’ and setting an example internationally.
This is a big day for America’s flying public.
The new Department of Transportation rules include an immediate cash refund for passengers who have had their flight delays for three hours or more for domestic flights and for more than six hours if the flight is international and if they do not accept alternative transportation or travel credits offered.
All tickets purchased directly from travel agents, airlines, and third-party sites like Expedia and Travelocity are eligible for a refund.
The rules follow a record $140 million fine handed to Southwest Airlines by the agency due to its operational meltdown during the 2022 holiday travel season.
Airlines Will Adapt to New DOT Rules, Secretary Says
Missed luggage, a non-functional wifi connection, downgrades in seats or inflight entertainment are also sufficient reasons for passengers to be compensated for, as the new DOT rules indicate.
The refunds have to be issued within seven days and have to be in cash unless the passenger decides otherwise. This means that refund vouchers or credits are off the table. DOT has granted airlines six months to implement the new rules.
Airlines are not enthusiastic about us holding them to a higher standard. [But I] know they will be able to adapt to this.
According to Airlines for America, the trade association for the country’s leading passenger and cargo airlines, the 11 largest US airlines gave $43 billion in customer refunds between 2020 and 2023, with amounts of up to $11 billion being issued in refunds during 2023 alone.