Airlines Required To Refund Passengers For Canceled, Delayed Flights

Department of Transportation Secretary Pete Buttigieg announced new rules for the airline industry that will require airlines to automatically give cash refunds to passengers for canceled and significantly delayed flights. They will also require airlines to give cash refunds if your bags are lost and not delivered within 12 hours.

'This is a big day for America's flying public,' said Buttigieg at a Wednesday morning news conference. According to Buttigieg, the new rules are the biggest expansion of passenger rights in the department's history. ABC News reports: Airlines can no longer decide how long a delay must be before a refund is issued. Under the new DOT rules, the delays covered would be more than three hours for domestic flights and more than six hours for international flights, the agency said. This includes tickets purchased directly from airlines, travel agents and third-party sites such as Expedia and Travelocity.

The refunds must be issued within seven days, according to the new DOT rules, and must be in cash unless the passenger chooses another form of compensation. Airlines can no longer issue refunds in forms of vouchers or credits when consumers are entitled to receive cash. Airlines will have six months to comply with the new rules.

The DOT said it is also working on rules related to family seating fees, enhancing rights for wheelchair-traveling passengers for safe and dignified travel and mandating compensation and amenities if flights are delayed or canceled by airlines. Buttigieg said the DOT is also protecting airline passengers from being surprised by hidden fees -- a move he estimates will have Americans billions of dollars every year. The DOT rules include that passengers will receive refunds for extra services paid for and not provided, such as Wi-Fi, seat selection or inflight entertainment.

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