New regulations from the US Department of Transportation now require airlines to automatically refund passengers for cancelled or significantly altered flights. Released on Wednesday, these final regulations aim to streamline refund policies and make it easier for travellers to receive their money back.
The rules outline specific circumstances where passengers are entitled to refunds, such as significant changes to departure or arrival times, downgrades in class, or changes in airports or connections. Additionally, passengers will receive refunds for lost checked bags, undelivered services like in-flight Wi-Fi or entertainment, and upfront communication of extra fees.
The Department aims to implement these changes within six months to enhance consumer protection and ensure prompt refunds. Airlines for America, a trade group, emphasised its member carriers’ commitment to consumer protection and competitive pricing.
Transportation Secretary Pete Buttigieg also announced upcoming regulations to expand passenger rights, enforce fee transparency, and strengthen enforcement against rule violations.