U.S.-based airlines are now required to give passengers automatic cash refunds when a flight is significantly delayed or canceled — even if the customer doesn’t ask for one — under a new Department of Transportation rule.
The rule, which was finalized in April, went into full effect this week ahead of the upcoming holiday travel season.
“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Transportation Secretary Pete Buttigieg said.
“Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers,” the secretary said when first announcing the rule.
The rule defines a significant delay as more than three hours for a domestic trip and six hours for international. The time limits apply to both scheduled departures and arrivals.
The refund must be processed within seven days if the ticket was bought with a credit card and within 20 days if paid for by another method.
