New Federal Rule Mandates Automatic Cash Refunds for Flight Disruptions

U.S. airlines must now provide automatic refunds for canceled or significantly delayed flights, simplifying the process for affected passengers.

The Department of Transportation's new rule requires airlines to issue automatic cash refunds for canceled flights and significant delays, defined as over three hours for domestic and six hours for international flights.
Refunds must be processed within seven days for credit card purchases and 20 days for other payment methods, ensuring timely reimbursement.
Passengers are entitled to refunds for checked baggage fees if luggage is delayed beyond 12 hours domestically or up to 30 hours internationally.
The rule also covers refunds for paid services like Wi-Fi or seat selection if they are not delivered as promised during the flight.
The regulation aims to eliminate the need for passengers to request refunds, providing clarity and consistency across all U.S. airlines.