US airlines now required to automatically refund you for canceled, significantly delayed flights

ATLANTA — If you are traveling by air soon, a new federal rule is now in effect focused on making travel better for you.

The U.S. Department of Transportation’s automatic airfare refund rule officially went into effect on Monday after it was approved earlier this year.

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The rule requires U.S. airlines to automatically refund passengers if their flight is significantly delayed or canceled even if the passengers don’t request a refund.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling. Today, our automatic refund rule goes into full effect. Airlines are required to provide prompt cash refunds without passengers having to ask,” Secretary Pete Buttigieg wrote in a statement Monday.

Here’s how you would qualify for an automatic refund, according to the U.S. Department of Transportation.

• 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; or 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 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 15-30 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 Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service.

The U.S. Department of Transportation says the refunds must be automatically issued whether or not the passengers ask for one.

They must also be issued within seven business days in cash or the original payment method like credit cards or airline miles.

The new rule comes just before the busy holiday travel season in November and December.

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