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New DOT Rule Mandates Automatic Refunds for Delayed or Canceled Flights

Airlines must now issue prompt cash refunds for significant schedule changes without requiring passenger requests.

Overview

  • U.S. airlines are required to automatically refund passengers for flights canceled or delayed significantly, defined as over three hours for domestic flights and six hours for international flights.
  • The rule also covers changes in departure or arrival airports, increased connections, and downgrades in service class.
  • Refunds must be processed within seven days for credit card purchases and 20 days for other payment methods.
  • Passengers will receive refunds for delayed or missing checked baggage and prepaid services like Wi-Fi that are not provided.
  • The new regulation aims to reduce flight disruptions by incentivizing airlines to improve scheduling and service reliability.