Flight canceled? New law forces airlines to cough up cash immediately

Good news for beleaguered travelers who frequently suffer mistreatment from airlines that cancel flights and let customers twist in wind: October it is the month that airlines need to start complying with the U.S. Department of Transportation's new rule on air travel refunds and consumer protections took effect.

Under the new regulations, as published in the Federal Register in August, passengers are entitled to full refunds for canceled flights or those with significant delays or changes. For domestic flights, a "significant" delay is defined as 3 hours or more, while for international flights, it's 6 hours or more.

Changes in departure or arrival airports, additional layovers, or downgrades in service class also qualify for refunds if the passenger chooses not to fly. Airlines must process these refunds promptly — within 7 business days for credit card purchases and 20 calendar days for other payment methods.

The rule also introduces automatic refund considerations in certain scenarios, such as when a flight is canceled without an alternative offered, or when a passenger doesn't respond to an airline's offer and the flight departs without them. While airlines can offer vouchers or credits as alternatives to refunds, these must be valid for at least 5 years and any restrictions must be clearly explained. Special protections are included for passengers with disabilities, ensuring they have additional refund rights if necessary accessibility features become unavailable due to changes.

Airlines are required to notify passengers about cancellations, significant delays, or changes, and inform them of their right to a refund. Similar refund rules apply to ticket agents as well.

While the rule became effective on August 12, 2024, airlines have until October 28, 2024, to fully comply with most provisions.

Previously:
Yippee! Airlines must now issue automatic refunds for canceled flights