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Airlines Now Required to Issue Automatic Refunds for Major Disruptions

10/31/24 09:45 am

A new Department of Transportation (DOT) rule now mandates that airlines issue automatic refunds for major disruptions, simplifying the process and removing the need for passengers to request credits or vouchers.

Under the new rule, a “significant change” includes delays exceeding three hours for domestic flights or six hours for international ones, major schedule adjustments, and changes to departure or arrival airports. Passengers are also entitled to refunds for downgrades in service or if they’re placed on aircraft without necessary accessibility features.

The regulation also covers baggage delays: checked luggage delayed more than 12 hours domestically, or 15-30 hours internationally, qualifies for refunds if a mishandled baggage report is filed. Refunds are likewise required if paid services, like Wi-Fi or seat upgrades, aren’t delivered.

DOT officials note that these changes ensure refunds are issued directly to the original payment method—within seven days for card transactions and 20 days for others—making the process more efficient and transparent for travelers.

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