In a major win for air travellers, the Department of Transportation (DOT) announced on Wednesday sweeping new regulations mandating airlines to provide automatic cash refunds to passengers for cancelled or significantly delayed flights. Transportation Secretary Pete Buttigieg hailed the announcement as a landmark moment for the flying public, asserting that these rules represent the most substantial expansion of passenger rights in the department’s history.
Under the new regulations, airlines are no longer empowered to determine the duration of delays before issuing refunds. The revised guidelines stipulate that refunds must be provided for delays exceeding three hours for domestic flights and six hours for international flights.
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Crucially, these regulations apply universally, encompassing tickets purchased directly from airlines, travel agents, and third-party platforms like Expedia and Travelocity.
Passengers will now be entitled to a refund if their flight is cancelled or significantly altered, and they decline alternative travel options or credits offered by the airline. Moreover, cash refunds will be mandated if passengers’ baggage is lost and remains undelivered for more than 12 hours.
According to the DOT’s new rules, airlines must issue refunds within seven days, with payments made in cash unless the passenger opts for an alternative form of compensation. Gone are the days when airlines could issue refunds solely in the form of vouchers or credits.
Airlines have been granted a six-month window to implement these new regulations.
Secretary Buttigieg emphasized the necessity of ensuring passengers receive their due refunds promptly and hassle-free. He also underscored the DOT’s ongoing efforts to enhance passenger rights, including protections against hidden fees and improved amenities for travellers, especially those with special needs.
The DOT’s decisive action comes in the wake of Southwest Airlines’ record $140 million fine for operational failures during the 2022 holiday season. Buttigieg cited this penalty as a precedent-setting measure in holding airlines accountable for maintaining passenger rights.
While acknowledging the challenges airlines may face in adapting to these heightened standards, Buttigieg reaffirmed the DOT’s commitment to ensuring that passengers receive the refunds owed to them.
In response to these regulations, Airlines for America, the trade association representing major U.S. carriers, emphasized the industry’s commitment to offering passengers various refundable fare options tailored to their needs.
These new DOT rules represent a significant step toward bolstering consumer protections in the airline industry and ensuring a fairer, more transparent travel experience for all passengers.
