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What are the new rules for airlines regarding automatic refunds for canceled flights?

Airlines must now provide automatic cash refunds within 7 business days for credit card purchases and 20 calendar days for other payment methods if a flight is canceled or significantly delayed.

The refunds must be issued in the original form of payment, whether that was cash, credit card, or other method.

The U.S.

Department of Transportation (DOT) will require airlines to give cash refunds if a passenger's bag is lost and not delivered within 12 hours.

Complaints related to airlines rejecting or delaying refunds made up 87% of all air travel service complaints at the height of the COVID-19 pandemic, leading to the new stricter rules.

In 2022, the 11 largest U.S.

airlines returned $112 billion in cash refunds, up from $75 billion in 2019 but slightly down from $109 billion in 2021.

The new regulations are aimed at enhancing passenger rights and ensuring transparent communication from airlines about refund policies.

Airlines can no longer hide fees or delay refunds, as they must now pay automatic refunds for canceled flights regardless of the reason.

The DOT will closely monitor airline practices to ensure compliance with the new refund requirements, with potential penalties for non-compliance.

The automatic refund rules apply to both domestic and international flights booked through U.S.

airlines or ticket agents.

Passengers are entitled to a full refund, not just a voucher or credit, if their flight is canceled or significantly delayed.

The new rules define a "significant delay" as one that is at least 3 hours for domestic flights and 6 hours for international flights.

Airlines must communicate clearly with passengers about their rights to refunds, including providing prominent notice on their websites and in emails about canceled or delayed flights.

AI Flight Refunds: Get Your Compensation Fast and Hassle-Free with Advanced Technology (Get started for free)