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Now travelers have one less thing to worry about thanks to new automatic refund rules that officially went into effect in October 2024. The new rules require airlines to make it easier for passengers to get their money back after their flight was cancelled or significantly changed.
The U.S. Department of Transportation issued the automatic refund rules, which explicitly define the specific circumstances in which airlines must provide refunds. The new rules apply to flights to, from, or within the United States on foreign or domestic carriers.
Under the new rules, passengers are entitled to automatic refunds for flights that are canceled, significantly delayed, or experience a "significant change" for any reason-including "uncontrollable" factors such as weather. This applies only if alternative transportation or travel vouchers aren't available or are rejected by the passenger.
If an airline is able to book you on another flight - on the same day or even the next - and you accept it, then the new rules don't apply. But if you refuse the rebooking, then you are entitled to the automatic refund.
Here's what the DOT considers a "significant change" to a flight:
- Your flight is canceled
- Your departure or arrival times change (more than 3 hours for domestic flights and 6 hours for international flights)
- Your departure or arrival airport changes
- The number of connections increases
- You were downgraded to a lower class of service
- Connections at different airports or flights on different planes that are less accessible or accommodating to your disability.
Refunds must also be prompt given within seven business days for credit card purchases and 20 calendar days for other methods of payment. The refunds must equal the full amount you paid, including taxes and fees, minus any used portion of the ticket.
Additionally, under the new rules, you are also entitled to a refund if you pay for an additional service (like Wi-Fi or seat selection) and the airline fails to provide the service. Plus, refunds apply to baggage delays, too. If you file a mishandled baggage report with the airline and your delayed luggage isn't delivered to you within 12 hours of your domestic flight or 15 to 30 hours of your international flight (depending on the flight's length), you can receive a full refund of your baggage fee.
The new rule is meant to streamline the refund process for all services and flight disruptions. Airlines must now issue notifications to fliers who are affected by delays and cancellations that state their right to a refund of their ticket price and extra service fees.