WASHINGTON – New federal rules for airlines issued this week by the federal government mean consumers will get money back if your flight is canceled or delayed, or your bags are misplaced.
The Transportation Department on Wednesday issued final rules aimed at making the airline industry more accountable.
Under the new rules, passengers automatically qualify for cash refunds for things like delayed flights. The airlines also will be required to more fully disclose fees for checking bags and for canceling or changing reservations.
“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” U.S. Transportation Secretary Pete Buttigieg said in a statement. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Separately, the Transportation Department this week issued a rule requiring airlines and ticket agents to clearly disclose what they charge for checked and carry-on bags and canceling or changing a reservation. On airline websites, the fees must be shown the first time customers see a price and schedule.
Under the new refund rule, airlines no longer will be able to decide how long is too long for a delay. The new rules specify that delays covered are more than three hours for domestic flights and more than six hours for international flights, the agency said.
Airlines still may offer another flight or a travel credit instead of a refund. But under the new rule, consumers will be able to reject those offers.
Payments to passengers on refunds for delayed and canceled flights will be due within a few days.
The new rule also requires refunds on fees for checked baggage if the passenger’s baggage is delivered to them within 12 hours for domestic flights or 15 to 30 hours for international flights. Those refunds also will be required for things such as seat selection or an internet connection if the airline fails to provide the service.
The agency said the new rules could save consumers more than $500 million a year. The new rules will take effect over the next two years.
Complaints about refunds skyrocketed during the COVID-19 pandemic, as airlines canceled flights and, even when they didn’t, many people didn’t feel safe sharing a plane cabin with other passengers, The Associated Press said.
Refund complaints to the Transportation Department have fallen sharply since mid-2020, according to Airlines for America, a trade group for large U.S. carriers.
A spokesperson for the group told The AP that airlines “offer a range of options — including fully refundable fares — to increase accessibility to air travel and to help customers make ticket selections that best fit their needs.”
The group said the 11 largest U.S. airlines issued $43 billion in customer refunds from 2020 through 2023.
