The U.S. Department of Transportation (DOT) has enacted a new regulation requiring airlines to automatically issue refunds to passengers for canceled flights or flights that experience significant schedule changes. Effective October 28, 2024, this rule aims to streamline the refund process for travelers and enhance consumer protection within the airline industry. Under the regulation, airlines are required to issue refunds promptly, with a seven-business-day window for payments made by credit card and a 20-calendar-day window for payments made by other methods. This rule also provides clarity by defining “significant change” and “cancellation” to ensure consistency across airlines. According to the DOT, a significant change includes delays of three hours or more for domestic flights or six hours or more for international flights, shifts in departure or arrival airports, additional layovers, or downgrades in travel class. These guidelines mark the first time the DOT has standardized such definitions, reducing previous ambiguity about passengers’ rights to refunds. Additionally, passengers are now entitled to refunds for checked baggage fees if their luggage is delayed by 12 hours or more on domestic flights or up to 30 hours for international flights. The rule also mandates refunds for ancillary services, such as in-flight Wi-Fi, seat […]
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