Airline passengers will get prompt automatic refunds for cancelations, significant changes or delayed bags under new rules set by the U.S. Transportation Department. As well, there’s now an official definition of what’s meant by “significant delay.”
The rules, which will go into effect in stages starting in October, also require that fees for checked baggage or reservation changes have to be visible upfront before booking is confirmed.
The new rules, which have had their official comment period and are now official, are part of the Biden administration’s campaign against airline and other junk fees and to improve passenger experience. They apply to all domestic airlines, and to flights to and from the U.S. by foreign airlines.
“Significant delay” under the new rules means departure or arrival delayed by three hours or more for domestic flights and six for international. A key feature of the new rules is that airlines are required to make required refunds of compensation automatically, without requiring passengers to fill out forms.
Refunds are to be made to the form of payment used, whether cash, credit or loyalty miles, and time limits are set for each kind. There’s also a change for vouchers issues by airlines when passengers are unable to fly because of a government restriction or doctor’s orders: vouchers must be valid for at least five years, and be transferable to others, such as family members.
