Yesterday was a good day for airline travelers and not so much for airlines!
On October 28, 2024, new airline passenger protection rules went into effect, aiming to streamline refund processes and bolster traveler rights in cases of delays, cancellations, or significant changes to flight itineraries. Here’s a breakdown of the key updates:
- Automatic Refunds for Cancellations and Major Delays: Airlines must now automatically issue cash refunds when flights are canceled or significantly delayed if the passenger chooses not to rebook. “Significant” delays are defined as delays over three hours for domestic flights and over six hours for international flights. This policy removes the need for travelers to request a refund manually, making the process much faster and easier for customers who prefer cash over vouchers or credits.
- Expanded Definition of “Significant Change”: Refunds are also required if there’s a significant change to a scheduled flight. This includes modifications such as changes to the departure or arrival airport, downgrades in service class, additional layovers, or airport connections that limit accessibility for travelers with disabilities. These changes trigger an automatic right to a refund, providing clarity and a consistent standard for both domestic and international flights.
- Baggage and Extra Service Refunds: Travelers can now receive refunds for checked baggage fees if their bags aren’t delivered within 12 hours (domestic flights) or up to 30 hours (international flights). Additional refunds apply to services like in-flight Wi-Fi or seat selection if these services are not provided as promised during the flight.
- Prompt and Transparent Refunds: Refunds must be processed within seven business days for credit card payments and within 20 days for other payment methods, giving travelers faster access to their funds. Airlines are also required to clearly inform passengers of these rights and cannot substitute cash refunds with travel credits or vouchers unless the passenger explicitly agrees.
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These changes are part of the U.S. Department of Transportation’s (DOT) broader efforts to enforce accountability among airlines. These rules add consistency to refund policies that previously varied widely across carriers. These reforms respond to a surge in consumer complaints during the pandemic and are aimed at enhancing reliability in customer service for airline passengers across the United States.
