Department of Transportation issues new rules: Airlines must provide automatic refunds when a flight is delayed or canceled

This Wednesday, the Department of Transportation (DOT) issued new rules that will force airlines to provide automatic cash refunds for canceled flights and significant delays.

Previously, airlines had the discretion to decide how long a delay should last before triggering refunds. However, according to the DOT statement, a "significant delay" is now defined as a delay of at least three hours for domestic and six hours for international flights, thereby eliminating ambiguity and ensuring compensation for affected passengers.

The DOT emphasizes that airlines and ticket agents must provide full refunds of the ticket purchase price, discounting only the value of the portion of transportation already used. Additionally, refunds must include all taxes and fees imposed by the government and fees imposed by airlines, regardless of their refundability.

Although airlines may still offer alternatives such as another flight or travel credits, consumers have the right to decline these offers and opt for a cash refund. Additionally, the new measures state that passengers can request refunds for additional services, such as Wi-Fi, seat selection or in-flight entertainment if an airline does not provide these services as promised.

The DOT statement also states that passengers who report problems with luggage are entitled to a refund of the fee for their checked baggage if it is not delivered within 12 hours after the arrival of their domestic flight at the gate or between 15 and 30 hours after the arrival of their international flight, depending on the duration of the flight.

The new rules for airlines will take effect within six to 12 months, as promised by the agency.

The DOT indicated, "There are different implementation periods in this final rule, ranging from six months for airlines to provide automatic refunds when owed to 12 months for airlines to provide transferable travel vouchers or credits when consumers are unable to travel for reasons related to a serious communicable disease."