Airline Refunds For Delayed Flights: The Department of Transportation (DOT) has implemented a landmark rule requiring U.S. airlines to issue automatic cash refunds for canceled or significantly delayed flights

This new regulation, championed by Transportation Secretary Pete Buttigieg, officially went into effect on Monday and aims to simplify the refund process for airline customers nationwide.

The United States Department of Transportation (DOT) has unveiled a groundbreaking rule mandating U.S. airlines to issue automatic cash refunds for canceled or significantly delayed flights. This move aims to simplify the refund process and empower passengers to recoup their expenses swiftly.

The new regulation went into effect on Monday and applies to all airline customers nationwide. Transportation Secretary Pete Buttigieg announced the initiative on social media, stating, “Passengers deserve to get their money back when an airline owes them — without headaches or haggling.”

According to the DOT rule, passengers are entitled to full refunds for any canceled flights or those delayed by more than three hours for domestic flights and six hours for international flights. Significant changes to the itinerary, such as a different departure airport or increased layovers, also qualify passengers for cash refunds.

The policy extends protection to travelers encountering unexpected fees and unfulfilled services. If checked baggage is mishandled and not returned within 12 hours of a domestic flight's arrival or 15 to 30 hours for international flights, the airlines must reimburse the baggage fees. Passengers are also eligible for refunds on services like seat selection, Wi-Fi, or in-flight entertainment if these are unavailable on their flights.

The automatic refund rule also mandates that airlines process refunds promptly: within seven days for credit card purchases and within 20 days for other payment methods. Notably, airlines are prohibited from substituting travel vouchers or credits unless specifically chosen by the passenger.

This new regulation comes ahead of the busy holiday travel season, bolstering passenger rights and setting new standards for transparency within the U.S. airline industry.