WASHINGTON — Airline canceled your flight? The plane arrived hours late after a maintenance issue? The inflight Wi-Fi didn’t work?
New federal rules say travelers deserve cash refunds when inconvenienced by their airline – not vouchers or travel credits.
At Dreamward Travel in Lakeland, they coordinate every aspect of their clients' travel, including booking flights and monitoring changes before and during the trip. Owner Maria Thomas said airlines canceling or changing flights is common.
“An everyday occurrence, especially during hurricane season, when we have storms. Flights are canceled, then they miss their connections. Sometimes we need to reroute them on other airlines,” said Thomas.
While her full-service travel agency aims to take away the hassle of planning a trip, Thomas said flight changes are still a very stressful situation for travelers.
"They change your flight time to where it’s no longer a flight that serves you well. Even though they allow you to cancel it, it can take sometimes 8-12 weeks to get a refund," said Thomas.
The rule would formalize a requirement that passengers receive refunds if a domestic flight is delayed by more than three hours or if an international flight is delayed by more than six hours.
It would also require a refund of any baggage fees for bags that arrive more than 12 hours late, and a refund of the fee for a purchased service like Wi-Fi or upgraded seating if the airline doesn’t deliver.
The rules, announced by the Transportation Department on Wednesday, also require airlines to provide upfront information about fees for baggage and changing flights.
Although many airlines have done away with change fees and disclose fees on their websites, Transportation Secretary Pete Buttigieg estimated more transparency with some airlines and websites would make it easier for travelers to shop around – ultimately saving consumers millions every year.
‘Without headaches or haggling’
“Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers,” Buttigieg said in a statement, saying the refunds were due “without headaches or haggling.”
There’s also a provision for travelers frustrated with call center hold times or filling out online claim forms. The rules require the fees to be automatic and prompt: Within seven days for a credit card refund and 20 days for other forms of payment.
CNN is contacting the trade groups representing airlines for comment.
Surge in complaints in 2022
The Biden Administration proposed its change to the refund rules in 2022 after a surge in complaints about refunds when the coronavirus brought air travel to a standstill. That year, DOT received nearly 47,600 complaints, more than double the number of complaints received in 2021. More than half of the complaints involved flight disruptions or refunds.
Many travelers complained at that time that airlines pushed noncash flight credit or required extended time on customer service phone lines to request a refund. Some of those credits expired long before the effects of the virus receded and travel returned to more normal levels.
This spring, DOT and other executive branch agencies are finalizing key rule changes from Biden’s term in office in case Republicans take control of Washington in November’s election. A federal law allows Congress to unravel recently implemented executive branch rules.
The cutoff date depends on the House and Senate legislative calendar but is likely to fall in May, meaning rules finalized before that date are not eligible for review under the Congressional Review Act.
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