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The US Department of Transportation has issued new guidelines requiring airlines to robotically problem refunds for delayed flights.
On Monday (October 28), Transportation Secretary Pete Buttigieg introduced that airlines are formally required to present automated refunds inside a number of days for canceled flights and “significant” delays. The new coverage went into impact that very same day.
“Passengers are entitled to a refund if their flight is canceled or significantly changed, and they do not accept the significantly changed flight, rebooking on an alternative flight, or alternative compensation,” the rule states.
The new regulation, which was proposed again in April, additionally applies to refunds of checked bag charges if the bag isn’t delivered inside 12 hours for home flights or 15 to 30 hours for worldwide flights. What’s extra, airlines within the US are entitled to refund passengers for any charges paid for an additional service, reminiscent of WiFi, seat choice, or in-flight leisure.
Under earlier rules, it was up to airlines to resolve how lengthy a delay should final earlier than triggering refunds. Now, the administration’s new coverage has shared its personal definition of a big delay – lasting no less than three hours for home flights and 6 hours for worldwide ones.
Some airlines additionally supplied prospects a journey credit score or voucher for canceled flights, as a substitute of getting their a reimbursement. However, airlines and ticket brokers should now problem refunds inside “seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.”
These refunds should even be made in full and in money, or no matter authentic cost technique used to make the flight ticket buy, reminiscent of bank card or airline miles.
Although the brand new regulation has been praised by shoppers all through the US, the transfer has since confronted pushback from the airline trade.
Airlines for America, a commerce group for massive US carriers, famous that refund complaints to the Transportation Department have fallen sharply since mid-2020. A spokesperson for the group stated airlines “offer a range of options – including fully refundable fares – to increase accessibility to air travel and to help customers make ticket selections that best fit their needs.”
The group stated the 11 largest US airlines issued $43 billion in buyer refunds from 2020 by means of 2023.
The American Society of Travel Advisors (ASTA) additionally got here out in opposition to the ruling when it was proposed in April, arguing that it unfairly burdens small journey businesses.
Additional reporting from AP.
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