New automatic refund rule for flight disruptions
A new rule changes the conditions for airline passengers when it comes to ticket refunds. Airlines are now obliged to automatically refund money if flights are cancelled or significantly delayed.
CHICAGO – A new rule changes the conditions for airline passengers regarding ticket refunds.
Airlines are now required to automatically refund money in the event of flight cancellations or significant delays.
In a Fox 32 special report on saving money, Dawn Hasbrouck explains what you need to know about the change.
The new requirement is part of the Federal Aviation Administration (FAA) Reauthorization Act, which President Joe Biden signed earlier this year.
“It used to be that you got a travel credit as a standard,” said Kevin Brasler, editor in chief of Consumers Checkbook. “Now you’re entitled to a refund and the refund has to be automatic.”
Brasler said the refund will include things like taxes and any payments for extras like seat selection.
“I think that’s a big benefit. And it really improves things because it removes a lot of confusion about what happens when you’re eligible for a refund,” he added.
“Ultimately, that’s money that belongs to the consumers,” said John Breyault of the National Consumers League. “And they paid it for a service the airline didn’t provide them. Then they have to provide a refund.”
Breyault said the change applies specifically to flights departing from the United States, noting that regulations clearly define the length of a delay before a refund must be made.
“So a significantly delayed flight is one that has a departure or arrival time of more than three hours domestically and more than six hours internationally. And if a flight is cancelled – that is, if the airline has scheduled it but then doesn’t operate it – you are also entitled to a full refund if you choose not to rebook or receive a voucher,” Breyault said.
He said refunds would be made the same way you paid and you would receive the refund in a timely manner.
“With airlines, and this applies to both airlines and travel agents, the refund must be made within seven business days if you paid by credit card in the past, or within 20 days if you paid by cash or check,” Breyault said.
An important note: If you decide to cancel your trip due to a delay, be sure to inform your airline of your plans.
“Don’t just not show up. Make sure you tell the airline, ‘I’m canceling my trip here.’ And the reason is because if you don’t show up, different rules may apply,” Brasler said.
Another change for families is that passengers travelling with young children can no longer be required to pay a fee to sit next to their children.
“If they want to sit with their young children, you have to accommodate them somehow without charging for the privilege of sitting next to their toddler,” Brasler said.
“I’ve seen seats on international flights that cost $95 or more. I’ve seen seats on domestic flights that cost $35 or more,” Brasler added.
Ultimately, the change is about making sure you get your money back and it doesn’t remain in potentially expiring travel credits, said the consumer advocates we spoke to.
“Now the airlines have to do what every other company has to do: If we are entitled to a refund, they have to refund us,” Brasler said.
“The road rules will help both consumers and competition. I think it’s a real win-win situation for both sides,” Breyault said.
The new rules are expected to come into force sometime in the autumn and will therefore apply from the start of the holiday travel season.
If you have any questions about how the refund system works, please visit the Department of Transport website for more information.
