The Department of Transportation on Wednesday rolled out new rules that will require airlines to automatically provide passengers with cash refunds for canceled or significantly delayed flights. The rule also mandates that airlines give cash refunds if a passenger’s bag is lost and not delivered within 12 hours.
Although the airlines can decide how long as delay is before a refund is given, the rules define “significant” delays as more than three hours for domestic flights and more than six hours for international flights. The rules apply to tickets purchase via the airlines, travel agents and third-party travel sites.
Airlines, which have six months to comply with the new rules, must issue refunds within seven days, and it has to be in cash—not vouchers or credits—unless the traveler selects an alternate form of compensation.
“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” said Transportation Secretary Pete Buttigieg. He called it the largest expansion of passengers rights in the Department of Transportation’s history.
