DOT Mandates Automatic Refunds for Flight Delays

The United States Department of Transportation has implemented new regulations requiring airlines to automatically issue cash refunds for canceled or significantly delayed flights. These rules, effective as of Monday, mandate refunds for domestic flights delayed by more than three hours and international flights delayed by more than six hours, as well as for checked baggage delays and undelivered services like seat selection or internet. Refunds must be processed within seven business days if purchased with a credit card and within 20 days for other payment methods. This initiative follows a rise in refund complaints during the COVID-19 pandemic and aims to eliminate the previous system where airlines set their own refund criteria. While initially resisted, the airline industry, including Airlines for America, now supports the rule, acknowledging its benefits for passengers. Transportation Secretary Pete Buttigieg highlighted the rule's significance, emphasizing the ease and speed of obtaining refunds without the need for passengers to request them.