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New US airline regulations mandate automatic refunds for canceled flights and delays; Read details
The US Department of Transportation (DOT) has implemented new regulations requiring airlines to provide automatic refunds for canceled flights and significant delays. Here's what you need to know.
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Airlines mandated to provide automatic refunds for canceled flights and significant delays
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Refunds extended to ancillary services like lost checked bags and undelivered amenities
The US Department of Transportation (DOT) has issued comprehensive regulations that require airlines to provide automatic refunds for canceled flights and significant delays, as per the Economic Times. The new rules, announced on Wednesday, are a significant step toward standardizing refund policies for all airlines operating in the United States.
New US airline regulation
The impetus for these regulations comes from an increase in complaints during the peak of the COVID-19 pandemic in 2020. A staggering 87% of air travel service complaints during that time period were about airlines and ticket agents refusing or delaying refunds, outlining the urgent need for reform.
Passengers will be entitled to refunds under the new regulations in a number of scenarios, including flight delays of more than three hours for domestic flights and six hours for international flights. Refunds must also be provided if passengers' seating classes are downgraded, their departure or arrival airports change, or the number of connections during their journey increases.
Furthermore, passengers who experience inconvenience due to changes in connecting airports or planes that are less accommodating to people with disabilities will be eligible for refunds. 
Refunds for ancillary services
Aside from flight disruptions, the regulations also apply to ancillary services such as checked baggage. If a checked bag is lost and not delivered within the timeframes specified, passengers are entitled to a refund of their checked bag fees. Similar provisions apply to other paid services, such as in-flight Wi-Fi or entertainment, if they are not delivered as promised.
To streamline the refund process, the DOT now requires airlines to provide prompt automatic refunds in the original form of payment, including cash. This ensures that passengers receive their appropriate refunds without any unnecessary delays or complications.
Transparent fee disclosure
In addition to refund requirements, airlines must now clearly communicate extra fees upfront for services such as checked luggage, carry-on bags, and cancellation/change fees. This transparency is intended to provide passengers with critical information, allowing them to make informed decisions and avoid unexpected charges.
Secretary of Transportation Pete Buttigieg stated that these regulations aim to protect passengers' rights and increase transparency in the airline industry. He mentioned an estimated annual savings of more than half a billion dollars for travelers, revealing the potential financial benefits of these reforms.
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