As of October 28, 2024, the U.S. Department of Transportation has a new policy in effect that requires airlines to automatically issue refunds within 7 business days to travelers in certain situations. Previously, air travelers often had to request refunds through their airline before it would be processed, with wait times exceeding weeks or even months. This policy is particularly good news with the expected peak in air travel expected over the Thanksgiving and Christmas holidays. Here are the top items covered by the new rule.
Cancellations and delays. Now in effect, refunds must be made automatically to the original form of payment within 7 business days due to flight cancellations or significant flight delays. The new rule defines a significant delay as three hours or more for a domestic flight and six hours or more for international flights. However, if the airline accommodates you on another flight and you accept it, they are not required to issue a refund.
Baggage delay refunds. If you pay to check your luggage and your bags are significantly delayed in reaching your destination, the airlines are required now to refund your bag fee. This applies to bags arriving over 12 hours after your booked flight for domestic itineraries and 15-30 hours for international (terms vary by destination). Prior to the new policy, it was up to the airline to determine whether to issue a bag fee refund or not.
Itinerary changes. The new policy also standardizes the previous patchwork of airline rules around significant changes to itineraries. If you choose not to accept a new itinerary provided, airlines must automatically issue refunds if the arrival or departure airport change, there is an increase to the number of connections, or the aircraft becomes less accessible due to a disability.
Ancillary services. Passengers are also entitled to request a refund if the airline doesn’t deliver on paid-for services or amenities such as Wi-Fi, lounge access, or a cabin class. Additionally, airlines must also offer live customer service 24/7 either through live online chat or phone support.
Remaining questions. There are some nuances to be aware of with the new policy. For example, some airlines had a definition of “significant delay” in their own rules that was shorter than the DOT policy, and it’s unclear yet what impact this will have. There also are remaining questions around how long refunds for ancillary services will take, and whether specific downgrades such as from an exit-row seat to a standard economy seat would make the cut.
All in all, we see this as a win for air travelers, particularly with the busy holiday period approaching. Whenever you fly, it’s a good idea to understand both the airline’s policies as well as your passenger rights. Travel insurance is also highly recommended especially for international trips, because it will help ensure you’re fully covered from the unknowns, whether specifically spelled out through the DOT or not. We’ll work to match you with the best policy as we craft your next getaway.
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