Airlines now required to issue automatic customer refunds
- airlines are now on the hook for prompt customer refunds due to canceled or significantly delayed flights.
Airlines must now automatically issue refunds for canceled flights and long delays.
Under the rule proposed earlier this year, airlines are required to issue compensation for delays of three hours for domestic flights and six hours for international flights.
It also applies to other airline services if they are not provided.
This includes paid Wi-Fi and lost or misplaced baggage which is not delivered within 12 hours of a domestic flight’s arrival.
For international flights airlines have 15 to 30 hours to deliver, depending on the length of the flight.
“Passengers deserve to get their money back when an airline owes them—without headaches or haggling. Today, our automatic refund rule goes into full effect,” said Transportation Secretary Pete Buttigieg.
The DOT said passengers must receive a refund within seven business days for bookings made with a credit card.
They have up to 20 calendar days for other payment methods.
“We support the automatic refund rule and are happy to accommodate customers with a refund when they choose not to be rebooked,” said trade group Airlines for America.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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