A passenger’s guide to new refund rules for airlines

A passenger's guide to new refund rules for airlines

Starting in about six months, air travelers will have an easier time getting a refund when things go wrong on a U.S. airline.

In most cases, inconvenienced fliers won’t have to do a single thing to get their money back.

Wednesday, the Biden administration issued final rules to require airlines to automatically issue cash refunds for things like delayed flights and to better disclose fees for baggage or canceling a reservation.

“It doesn’t require you to fill out forms, or go online or deal with customer service, which in some cases is an oxymoron,” said CBS Travel Editor Peter Greenberg.

The Transportation Department said airlines will be required to provide automatic cash refunds within a week for canceled flights and “significant” delays.

“The airlines are required to get you that refund to your form of payment within seven days,” Greenberg said. “That will show up on your statement — it’s as simple as that.”

The rule will also apply to refunds of checked-bag fees if the bag isn’t delivered within 12 hours for domestic flights or 15-30 hours for international flights. And it will apply to fees for things such as seat selection or an internet connection if the airline fails to provide the service.

Greenberg said passengers will not have to take any action to get their refund. “Anytime the flight’s delayed by more than three hours, it triggers that system. Anytime the flight is canceled, it triggers that system.”

Asked how a passenger could feel confident that an airline would be aware that its Wi-Fi wasn’t working during a particular flight, and issue a refund?

“If you’re on a plane with 250 passengers, you will not be the only person affected if the Wi-Fi doesn’t work — believe me, the airline will know,” he said.

There are some cases when an inconvenienced flier won’t get their money back. “If your flight is delayed or canceled, and the airline offers you a rebooking option and you choose that rebooking option, obviously the refund doesn’t come into play,” he said.

The Department of Transportation issued a separate rule requiring airlines and ticket agents to disclose upfront what they charge for checked and carry-on bags and canceling or changing a reservation. On airline websites, the fees must be shown the first time customers see a price and schedule.

The rule will also oblige airlines to tell passengers they have a guaranteed seat they are not required to pay extra for, although it does not bar airlines from charging people to choose specific seats. Many airlines now charge extra for certain spots, including exit-row seats and those near the front of the cabin.

According to Transportation Secretary Pete Buttigieg, most of the new rules will go into effect in approximately six months, although some start in one year.

Associated Press contributed to this report. 

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Neal Augenstein

Neal Augenstein has been a general assignment reporter with WTOP since 1997. He says he looks forward to coming to work every day, even though that means waking up at 3:30 a.m.

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