U.S.: airlines must offer cash refunds for delayed or cancelled flights

30-04-24

In a new regulation established by the U.S. Department of Transportation, airlines are now required to issue automatic cash refunds for canceled or significantly delayed flights. These rules, which went into effect on April 24, also require airlines to improve transparency in reporting additional fees, such as baggage and reservation cancellation fees.

Under the new guidelines, a delay is considered significant if a domestic flight is delayed by three hours or more, and six hours for international flights. In addition, airlines will be required to refund checked baggage fees if delivery is delayed more than 12 hours for domestic flights and between 15 to 30 hours for international flights. Fees for services not provided, such as seat selection or internet connection, will also be refunded.

This move is in response to increased requests for refunds during the COVID-19 pandemic, a time when flight cancellations were frequent. According to Airlines for America, refund claims have decreased significantly since mid-2020 thanks to the offering of fully refundable fares and other policies that have improved the affordability of air travel. From 2020 to 2023, major U.S. airlines issued refunds totaling $43 billion.

In addition, an additional rule requires both airlines and issuing agencies to clearly disclose fees for additional services from the first moment a customer sees the price and schedules on websites. Airlines will also be required to inform passengers of their rights to guaranteed seating, although they can still charge for specific seat choices, such as those in the exit row or near the cabin.

According to Airlines for America, these new regulations could save consumers more than $500 million a year, ensuring greater protection and transparency for travelers.