Airlines Now Required to Issue Cash Refunds for Canceled or Delayed Flights

The U.S. Department of Transportation (DOT) has introduced a new rule mandating airlines to issue cash refunds for canceled or significantly delayed flights, regardless of whether passengers explicitly request one. This rule, which went into effect on Monday, ensures that passengers are refunded without having to negotiate or wait excessively.

Transportation Secretary Pete Buttigieg announced on social media platform X, stating, “Today, our automatic refund rule goes into full effect.” He emphasized that passengers should receive refunds without “headaches or haggling.”

Under the new regulation, airlines must process refunds within seven business days if tickets were bought through a credit card or within 20 days for other payment types. If a flight gets canceled or delayed significantly, and the passenger opts not to accept the change, the refund will be processed automatically.

This rule comes just before the busy holiday travel season, aiming to reduce passenger frustration. Airlines have shown mixed reactions, with the airline industry group Airlines for America expressing conditional support. “We support the automatic refund rule and are happy to accommodate customers with a refund when they choose not to be rebooked,” the organization stated.

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