Today, the automatic refund rule comes into effect, which obliges airlines to provide cash refunds to passengers immediately, without the need for them to request it. This regulation was announced by the secretary through a publication. "Passengers deserve to get their money back when an airline owes them, without headaches or haggling," the secretary expressed.
The new rule, which began on Monday, requires airlines in the United States to refund passengers whose flights have been delayed or canceled, even if the passenger has not explicitly requested the refund. This measure is being implemented as part of a series of actions to reduce the flight cancellation rate, which as of 2024 stands at less than 1.4%, according to U.S. Transportation Secretary Pete Buttigieg.
Passengers are entitled to a refund if their flight is canceled or significantly altered and they choose not to accept alternatives proposed by the airline. It also includes situations where mishandling of luggage is reported, where the passenger is entitled to a refund of the checked baggage fee.
In cases where an airline does not provide an additional service or product for which payment has been made, such as wifi, seat selection, or in-flight entertainment, the passenger is entitled to a refund of the corresponding fee. According to the regulation, airlines must refund the passenger within up to seven business days if the purchase was made with a credit card, and up to 20 days if another payment method was used.
Despite the implementation of this rule, the airline industry has shown its displeasure. In July, Buttigieg urged airlines to be clear with passengers about when they are entitled to a refund.
