New US ‘Automatic Airline Refund’ Regulations

New ‘Automatic Airline Refund’ rules are now in effect

The U.S. Department of Transportation has introduced new rules requiring automatic refunds for significantly delayed or canceled flights. Although these changes don’t drastically alter your entitlements, they offer clearer guidelines and should simplify the process of obtaining refunds for flight cancellations and major delays.

When Airlines Owe You a Refund

New Rules for Easier Refunds

The latest regulations make it simpler to get your money back. Airlines are now required to automatically issue prompt cash refunds when you’re entitled to one. “Prompt” is clearly defined as within seven business days for credit card purchases and 20 calendar days for other payment methods. You’ll receive the full amount you paid, minus any portion of the trip you’ve already used. Refunds must be in cash or returned to the original form of payment (credit card, miles, etc.).

Automatic Refund Eligibility

All passengers that experience ‘significant’ changes/cancellations to their flight will now be automatically refunded by the airline.

You qualify for an automatic refund if you decline alternative transportation or travel credits offered by the airline in the following situations:

• Your flight is canceled.
• Your domestic flight is delayed by three hours or more.
• Your international flight is delayed by six hours or more.
• Your departure or arrival airport changes.
• The number of connections increases.
• Your cabin class is downgraded.
• A change in aircraft or connecting airport is less accessible or accommodating to your disability.

Additionally, if you pay for extra services like inflight Wi-Fi or seat selection and the airline fails to provide them, you’re entitled to a refund. Checked bag fees are refundable if your baggage is delayed by:

• 12 or more hours for a domestic flight.
• 15 to 30 hours for an international flight, depending on the flight length.

When Airlines Don’t Owe You a Refund

If you bought a non-refundable ticket and your flight delay doesn’t meet the “significant” criteria under the new guidelines, the airline isn’t required to refund you. In the U.S., airlines also aren’t obligated to refund for delays deemed uncontrollable. Typically, you won’t get a refund for delays caused by:

• Personal reasons (illness, being late, etc.).
• Weather or natural disasters.
• Air traffic.
• Safety or security issues.

Airlines aren’t required to cover incidental expenses due to delays, like meals and lodging. However, depending on the situation and the airline, they might offer meal or hotel vouchers or reimburse you for additional expenses. So, reach out to the airline as soon as possible if your flight is delayed or canceled.