Airlines across the United States are now required to automatically issue cash refunds for canceled or significantly delayed flights, even if passengers do not specifically request them. This mandate, set forth by the Department of Transportation, officially took effect on Monday, marking a major shift in passenger rights just in time for the busy holiday travel season.
Transportation Secretary Pete Buttigieg shared the announcement on social media platform X, noting that this regulation allows passengers to receive their money back from airlines without the need for negotiating or requesting the refund. “Today, our automatic refund rule goes into full effect,” Buttigieg stated. “Passengers deserve to get their money back when an airline owes them—without headaches or haggling.”
Under this rule, if a flight is canceled or significantly changed, and the passenger opts not to accept the new arrangement, rebooking, or any other compensation, the airline must process an automatic refund. For passengers who purchased their ticket with a credit card, the airline must refund them within seven business days; those who paid by other means are to be refunded within 20 calendar days.
This new rule, however, has met some resistance from the airline industry. In July, Secretary Buttigieg reminded airlines of their obligation to clearly inform customers about their refund rights. While some in the industry initially expressed concerns, Airlines for America, a prominent industry lobby group, released a statement in support, saying, “We support the automatic refund rule and are happy to accommodate customers with a refund when they choose not to be rebooked.”
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