Everyone knows the trials and tribulations of traveling by air. Yes, it can be fun. However, it can also be very stressful. One of the biggest challenges is dealing with the airlines, especially if you encounter a problem along the way. Fortunately, it will now be easier to deal with the airlines, at least when it comes to getting a refund.
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Here’s what’s new
The U.S. Department of Transportation now requires airlines to promptly provide passengers with automatic cash refunds.
The new rule makes it easy for passengers to obtain refunds, when airlines cancel or significantly change their flights, significantly delay their checked bags or fail to provide the extra services they purchased.
Previously, airlines were permitted to set their own standards for what kind of flight changes warranted a refund.
As a result, refund policies differed from airline to airline. That made it difficult, if not impossible, for passengers to know or assert their refund rights.
You are entitled to a refund for:
Canceled or Significantly Changed Flights
Passengers will be entitled to a refund, if their flight is canceled or significantly changed and they do not accept alternative transportation or travel credits offered.
For the first time, the rule defines “significant change.”
Significant changes to a flight include:
- Departure or arrival times that are more than 3 hours domestically and 6 hours internationally.
- Departures or arrivals from a different airport.
- Increases in the number of connections.
- Instances where passengers are downgraded to a lower class of service.
- Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.
Significantly Delayed Baggage Return
Passengers who file a mishandled (meaning “lost”) baggage report will be entitled to a refund of their checked bag fee, if it is not delivered within 12 hours of their domestic flight arriving at the gate or 15 to 30 hours of their international flight arriving at the gate, depending on the length of the flight.
Extra Services Not Provided
Passengers will be entitled to a refund for the fee they paid for an extra service — such as inflight Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide the service.
The final rule requires refunds to be:
Automatic
Airlines must automatically issue refunds without passengers having to request them or jump through hoops.
Prompt
Airlines and ticket agents must issue refunds within 7 business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.
Cash or Original Form of Payment
Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles.
Airlines may not substitute vouchers, travel credits or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.
Full Amount
Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used.
The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.
When New Rules Take Effect
These new refund rules won’t happen overnight, but they will be fully in place by next year.
There are different implementation periods in this final rule ranging from 6 months for airlines to provide automatic refunds when owed to 12 months for airlines to provide transferable travel vouchers or credits when consumers are unable to travel for reasons related to a serious communicable disease.
Mary Field says
Thank You for adding these new DOT guidelines for MHOTC members to read and understand. This site provides huge value to me all the time!