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Here’s what to know about the new airline refund rule

Airlines are now required to offer refunds for delays and cancellations

Written by
Gerrish Lopez
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The Biden administration just made it easier for you to get your money back if your flight has been significantly delayed or canceled. The U.S. Department of Transportation issued a rule that requires airlines to provide passengers with automatic cash refunds under defined circumstances.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

The new rule clearly defines the specific circumstances in which airlines must provide refunds. Prior to the rule, airlines could define their own circumstances that warranted a refund, making it difficult for passengers to know when they were entitled to compensation. Under the rule, passengers are entitled to a full refund for canceled or significantly delayed (by three hours for domestic flights, six hours for international) flights, a checked bag fee refund for baggage delays (12 hours for domestic flights, 15 to 30 for international) and a refund on fees for extra services like Wi-Fi if the service is not provided.

The rule also makes it easier to get a refund, eliminating complicated processes set by airlines. This rule requires refunds to be automatic, issued in cash or original payment method, issued within seven days for credit card payments or 20 days for other forms of payment, and in the full amount, including taxes and fees.

Find more information about airline passenger rights and the new rules on the DOT website.

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