New rule requires full cash refunds for flight delays, cancellations

The Biden-Harris administration implemented a new rule on Monday, Oct. 28, requiring U.S. airlines to issue full cash refunds to passengers whose flights are significantly delayed or canceled. The policy, aimed at bolstering consumer rights, received positive feedback online, as travelers hailed it as a financial win and a boost for peace of mind. 

Passengers wouldn’t need to request the refund. The refund is processed automatically if they declined the airline’s offer for a rebooked flight.

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Passengers become eligible for automatic refunds if a domestic flight was delayed by three or more hours, an international flight by six or more hours or if the flight was canceled.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” Transportation Secretary Pete Buttigieg said.

The rule also applies to major itinerary changes, such as airport switches or additional stops.

Airlines must issue refunds within seven business days for payments made by credit card. It must be within 20 days for payments made by other methods.

Buttigieg noted airlines might oppose the measure. However, airlines are now required to clearly communicate passengers’ refund rights.

The timing of this policy change coincided with the approaching holiday travel season, a period known for high passenger volumes.