Delayed and canceled flights now eligible for a full cash refund

Travelers inconvenienced by flight delays and cancellations will no longer have to worry about fighting for a refund thanks to new regulations approved Wednesday by the U.S. Department of Transportation.

Passengers on domestic flights delayed by three hours or more or international flights delayed by six hours or more will be entitled to an automatic cash refund for the full price of the flight. Canceled flights will also make travelers eligible for a refund.

Related: Airlines made $33 billion on baggage fees in 2023: report

Under the new rules, refunds must be issued within a few days.

Airlines can still try to offer passengers the option of a new flight or travel credit instead of a cash refund, but passengers now have the legal right to opt out of those options.

The automatic nature of the refunds means that affected passengers will not have to submit a request or file a complaint to be compensated for the inconvenience they have suffered.

“Passengers deserve to get their money back when an airline owes them, without any hassles or haggling,” Transportation Secretary Pete Buttigieg said in a news release Wednesday. “Our new rule sets a new standard for requiring airlines to promptly provide cash refunds to their passengers.”

In addition to cash refunds, the DOT also issued new guidelines on checked baggage: If a bag is not delivered within a 12-hour window of a passenger’s flight landing on a domestic flight or within 30 hours of an international flight , airlines will need to issue refunds on your checked baggage fee, which vary by airline.

Customers will also receive a refund if they pay for extra services, but don’t receive them during the flight, such as Wi-Fi or seat selection.

Related: United Airlines loses $2 billion after waiving change fees

The new rules are part of the administration’s plan to eliminate “surprise junk fees.” Buttigieg said airlines must now explain all additional fees “clearly, conspicuously and accurately” when displaying the price of the fare for purchase.

“To be clear, we want the airline industry to prosper,” Buttigieg said at a news conference at Ronald Reagan Airport on Wednesday. “That’s why we are so rigorous about passenger protection. This will strengthen confidence in air travel at a time when airlines need to do more to ensure passenger confidence.”

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