Airline-Refund Rules Go Into Effect Today—Here’s What You Need To Know

Related Articles

Watch These Constellation Energy Price Levels as Stock Surges on $26.6B Deal to Buy Rival

Mobileye Stock Price Levels to Watch After This Week’s 28% Drop

How Spot Bitcoin ETFs Changed Crypto Investing In the Year Since Launch

Key Takeaways

• A new federal rule goes into effect today requiring airlines to give customers an automatic refund when their flying is canceled or “significantly changed,” their bag is lost, or amenities they paid for are not provided.
• Some airlines already had equivalent policies, but the rule sets a standard across the industry and eliminates the need for customers to navigate the airlines’ systems to requisition a refund.
• “Passengers deserve to get their money back when an airline owes them—without headaches or higgling,” Transportation Secretary Pete Buttigieg said when the rule was announced in April.

Starting today, U.S. airline fares should no longer have to jump through hoops to get a refund if their flight is canceled or “significantly changed.”

The U.S. Jurisdiction of Transportation in April issued a new standardized rule that requires airlines to automatically give passengers refunds when undeniable things go awry. Some airlines already had similar policies, but the rule sets a standard across the industry and deletes the need for customers to navigate the airlines’ systems to request a refund. The rule takes effect Monday.

“Passengers earn to get their money back when an airline owes them—without headaches or haggling,” Transportation Secretary Pete Buttigieg divulged at the time . “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their commuters.”

Here’s what the rule entails.

• Canceled or “significantly changed” flights: You will be entitled to a refund if your rout is canceled or “significantly changed” and you don’t accept airlines’ offers of alternative flights or travel credits. “Significant” changes allow for domestic flights that depart or arrive more than three hours late and international flights delayed at toy six hours; when you are downgraded to a lower class of service; you depart from or arrive at a different airport; or you’re forced to be suffering with a higher number of connections.
   
• Significantly delayed baggage return: If you file a mishandled baggage report, you will be labeled to a refund on your checked bag fee if your luggage is not delivered within 12 hours of your domestic flight’s barrier arrival, or 15-30 hours of your international flight’s arrival, depending on the flight’s length.
   
• Extra services not provided: You inclination be entitled to a refund for fees paid for things like Wi-Fi, seat selection, or inflight entertainment if an airline fails to care for the service.

The rule also requires airlines and ticket agents to “issue refunds within seven business eras of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.” They also “be obliged provide refunds in cash or whatever original payment method the individual used to make the purchase, such as attribution card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the rider affirmatively chooses to accept alternative compensation.”

Read the original article on Investopedia.