A new federal regulation has taken effect, requiring airlines to automatically provide cash refunds—without passengers having to request them—when flights are significantly delayed or canceled.

On the 28th, the U.S. Department of Transportation (DOT) announced the implementation of the final rule, mandating that airlines process cash refunds automatically instead of offering vouchers.

The DOT stated, “When airlines owe passengers, they should be refunded without having to ask.”

Under the new rules, airlines must automatically issue refunds for canceled flights. For domestic flights, passengers are eligible for refunds if their flight is delayed by 3 hours or more and they do not accept an alternative flight. For international flights, the threshold is a delay of 6 hours or more. Refunds for credit card purchases must be processed within 7 business days, while other payment methods allow up to 20 days.

The new regulations also cover refunds for paid but undelivered in-flight services. This includes amenities such as Wi-Fi, in-flight entertainment, and other conveniences passengers may purchase to enhance their travel experience. If these services are unavailable during the flight, passengers are entitled to automatic refunds for the unfulfilled services.

The rules also address compensation for checked baggage fees if airlines fail to deliver luggage within specified timeframes. For domestic flights, airlines must return lost baggage within 12 hours of gate arrival, while international flights allow between 15 to 30 hours, depending on the flight duration.

With these new regulations, passengers are expected to be better protected from unfair penalties due to lost baggage or inadequate service, a common issue among travelers. Passengers are advised to immediately request refunds from airlines for canceled or delayed flights and to keep records such as emails, booking confirmations, and delay/cancellation documents.

Experts anticipate that the DOT’s new rules will simplify refund processes, hold airlines more accountable, and provide greater transparency for consumers.

Before these regulations were enacted, the authority to issue refunds rested solely with the airlines, often leaving consumers frustrated and powerless.



<Hongyong Park>