A long-over due policy change has now been updated for all airlines in the United States. Many frequent fliers or those who have traveled before may be familiar with the frustrating circumstance when your flight gets delayed or cancelled. Furthermore, those who have been in this circumstance, are no doubt also familiar with the painstaking process you must go through if you would like a refund for the delay. Now, however, that is all set to change.
Department of Transportation finalizes federal law on refunding flight
In October of this year, the Federal government finally put into effect new legislation which stipulates that airlines in the U.S. must refund flyers in cash and not through vouchers if their flights are significantly delayed or cancelled. Transportation Secretary Pete Buttigieg made the announcement on X following months of deliberation since he first proposed the rule in April. “Today, our automatic refund rule goes into full effect,” Buttigieg posted. “Passengers deserve to get their money back when an airline owes them—without headaches or haggling.”
The new legislation comes in the nick of time just before the holiday season. This year, the holiday flying season is expected to be one of the biggest since the start of the COVID19 pandemic. With the economy slowly recovering, people are starting to be able to travel again in- and -out of state to visit family over the Christmas holiday season. Additionally, unpredictable weather is also expected to occur this year which could impact flight times.
Automatic refunds for flyers
What makes the new legislation even better, is that no paperwork or filing is required from the flyer’s side to receive the refund. refunds are automatically processed by an airline if a passenger’s flight is “canceled or significantly changed, and they do not accept the significantly changed flight, rebooking on an alternative flight, or alternative compensation” according to Buttigieg.
Usually, airlines may only offer vouchers or credits for future travel instead of cash refunds, which may not be useful for passengers who do not intend to fly again. Additionally, passengers have also encountered roadblocks when dealing with customer service, which can be understaffed or overwhelmed, leading to long wait times or unhelpful responses. with trying to get these vouchers as compensation for missed or delayed flights.
Legislation intended to make airlines plan more efficiently
The new piece of legislation is also intended to encourage airlines to create realistic flight schedules which minimize the risk of a flight being delayed. “When an airline knows that all — instead of just a few of the passengers on a canceled flight — are likely to actually get their money back, it gives them a different set of reasons to put in the investment, and the realistic scheduling that makes those cancellations less likely to happen to begin with,” said Buttigieg.
Payments must be sent out to passengers within seven days if they purchased a ticket with a credit card and within twenty days if they used alternative means of payment. Additionally, there has been Federal clarity on what a “significant delay” constitutes. Previously, this varied from airline. Now, a significant delay to a flight operating in the U.S includes a three-hour or longer delay for domestic flights, and at least a six-hour delay on international flights. In addition, if an airline changes a flight’s departure or arrival airport, or adds a connection, that also counts as a delay.
These changes to legislation ahead of the holiday season will significantly help passengers and airlines alike with keeping flights on time to make sure everyone is able to travel to their families on time for Christmas.
