US Airlines Now Required to Issue Automatic Refunds for Cancellations

US Airlines Now Required to Issue Automatic Refunds for Cancellations

In a significant win for air travelers, the Joe Bidden administration implemented new regulations requiring airlines to issue refunds for canceled flights automatically. This eliminates the previous system where passengers had to fight for their money back or accept vouchers instead of cash.

The new rules will aim to streamline the refund process and enhance passenger rights. Here's what you need to know:

• Automatic Refunds: Airlines are now mandated to proactively offer refunds to passengers for canceled flights, marking a departure from the traditional approach where the onus was on travelers to request them.
• Swift Processing: Refunds must now be processed promptly. For purchases made via credit card, customers can expect their refunds to be processed within 7 days. For transactions carried out through other payment methods, the refund process will extend to 20 days. This initiative aims to enhance customer satisfaction and streamline the refund process.
• Original Form of Payment: Airlines are obligated to refund passengers using the same payment method they used for booking (cash or credit card).
• Complete Coverage: The refund will encompass the entire ticket price, including government taxes and airline fees, excluding any portion of the flight already completed.

Read More - Emirates Airlines Cancellation Policy

In addition to the above, the new regulations will now require airlines to disclose any hidden fees like baggage or flight change charges. This will aim to help customers prevent any unexpected costs.

Both the rules are expected to take effect in about six months or by the end of October.

This shift in policy, spearheaded by the Transportation Secretary Pete Buttigieg, is expected to save US consumers over half a billion dollars annually and empower them with greater financial security. The DOT's new regulations signify a remarkable step towards increased transparency and passenger protection within the US airline industry.