The Biden-Harris Administration has announced a new rule requiring airlines to swiftly issue automatic cash refunds to passengers.
The U.S. Department of Transportation (DOT) finalized a rule mandating airlines to provide refunds under specific circumstances, aiming to eliminate disparities in refund policies across carriers.
Previously, airlines set varying standards, complicating refund requests for passengers.
Refunds will now be guaranteed for flight cancellations, significant schedule alterations, and delayed baggage return.
Under the new rule, refunds will be automatic, issued promptly within defined timeframes, and provided in cash or original payment method.
Some of the conditions that entitle passengers with a refund include the following:
Departure or arrival time difference of more than three hours for domestic flights and more than six hours for international flights.
If the passenger is scheduled to depart from a different origination airport or arrive at a different destination airport.
Itinerary with more connection points than that of the original itinerary, downgrading a passenger to a lower class of service.
If a passenger with a disability is scheduled to travel on a substitute aircraft that results in one or more accessibility features needed by the passenger being unavailable.
The above rules aim to simplify the refund process, eliminating cumbersome procedures and default issuance of travel credits.
DOT intends to propose further regulations, including bans on family seating fees and mandates for passenger compensation during flight disruptions.
Additionally, initiatives to enhance wheelchair users' travel rights are underway.
Some of the major air carriers in the U.S. include American Airlines Group Inc (NASDAQ:AAL), United Airlines Holdings Inc (NASDAQ:UAL), Delta Air Lines Inc (NYSE:DAL), and Southwest Airlines Co (NYSE:LUV).
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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