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Understanding the New USDOT Rules for Flight Cancellation Refunds

Understanding the New USDOT Rules for Flight Cancellation Refunds

Often, we book a flight, pay for all the amenities, spend extra money choosing our favorite seats, and subscribe to all the add-on services, paying so many dollars only to ensure a better journey. Unfortunately, flights can get canceled or delayed anytime and anywhere without any reason. The real struggle begins when the airline authorities refuse to acknowledge the problem, let alone compensate for the same. Moreover, they cover up the matter by offering trivial things like travel credit, vouchers, etc., instead of giving a refund.

To help passengers get steady and timely compensation without any hassle, the US Department of Transportation (USDOT) has recently announced a new refund policy that mandates airline service providers to save your travel money. As per the new rule, airlines must initiate automatic cash transfers for every canceled or delayed flight or delays due to checked bags or failing to provide any add-on service purchased by you while booking the flight. This means you don’t have to pay junk or hidden fees to the airlines.

This blog will help you dive deep into every detail of the new USDOT refund rules for airlines. What are they? And what rights are there apart from flight cancellation provisions and flight delay compensation? Let’s dive in.

Key Takeaways

  • All airlines provide cash refunds for the total value of tickets in case of canceled or delayed flights.
  • It will help passengers obtain every piece of information to have a holistic view of air travel costs and ensure that no junk fees are applied.
  • The refund policy also mandates airlines to disclose change, baggage, and cancellation fees. It will also prohibit airlines from sharing passenger information with third-party booking sites and travel agents through cookies.
  • Airlines often use bait-and-switch tricks to disguise the actual airfare by showing a low base cost and hiding crucial mandatory fees, thereby misleading passengers. The new refund policy bans this.
  • The new rule also empowers passengers to avoid surprise fees when purchasing tickets from airlines, brick-and-mortar, or online travel agents.

Rules for Flight Cancellation Refund

The new DOT rules say all airlines must pay cash refunds for the total value of tickets if a flight gets canceled. They must provide all the information, ensure the latter understands everything regarding the airfare, and check that no junk fee is involved.

Moreover, airlines must help you rebook alternate flights to your destination. You can also accept another flight, travel credit, or any alternate mode of transportation that the airline offers. Note that you will get a full refund if your flight is canceled, or you notice any significant changes in your travel itinerary. However, the refund is applicable only when you don’t accept travel vouchers or alternative modes of transportation.

The cherry on top, is that the new USDOT rules allow you to file for a flight cancellation refund even in extraordinary circumstances like climate downturns. The provisions apply to any significantly altered flight. However, your departure or arrival time must be more than 3 hours for domestic and 6 hours for international flights, and departures and arrivals must be from a different airport. Also, the higher the number of connections, the more likely you are to get a refund.

Rules for Flight Delay Compensation

You are eligible for a flight refund every time your flight is delayed or your itinerary changes. However, you need to ensure that the following conditions are satisfied.

  • Your departure from the origin airport is at least three hours earlier than the original time for domestic flights. And six hours or more in case of international flights.
  • Your domestic flight arrives at least three hours after its original time. For international flights, it’s more or equal to six hours.
  • Your departure must be scheduled from a different airport or at another destination.
  • Your travel itinerary should have connection points that are way more numerous than the original itinerary.
  • Your services have been changed to lower-grade services.
  • For differently abled passengers, the travel itinerary must have one or more connecting airports that differ from the original itinerary. Additionally, they could be made to take an alternate flight that lacks the necessary accessibility features.

Refund Policy for Delay in Baggage

The new refund policy mandates that all airlines provide a refund if your checked baggage arrives late or is not delivered. Authorities will now have to initiate automatic refunds for the checked baggage fees. However, the baggage delay should be within 12 hours of your domestic flight arriving at the airport gate, or 15-30 hours of arriving at the gate for international flights. It will depend on the flight length. Also, you need to file a Mishandled Baggage Report.

Refund Policy for Add-on Services

You can file for a refund if you pay for add-on services like Wi-Fi, seats, or in-flight entertainment and the airlines fail to provide them. Also, the new policy will require airlines to disclose every piece of information related to surprise fees charged by them or travel agents. Airlines and agents often charge hefty upfront costs for services like checked bags, reservation changes, carry-ons, etc.

Automatic Cash Transaction

The flight cancellation refund and flight delay reimbursement must be as follows.

  • Automatic: Airlines have to automatically issue refunds without requiring passengers to send in a request or navigate paper trails precisely.
  • Prompt payments: Airlines and ticket agents should initiate compensation within seven days of the amounts becoming due for purchases made with credit cards. Any other mode of payment should be initiated within 20 calendar days.
  • Only cash or original form of payment: Airlines must make refunds in cash, or the original payment mode used to make normal purchases, like credit cards. Airlines are no longer allowed to substitute refunds with vouchers, travel credits, or any other forms of pseudo refunds. If you still choose to use these alternatives, you will become ineligible for a refund.
  • The total amount of refund: Airlines must initiate refunds at the total value of the ticket price, less the cost of transportation already utilized. The refunds should necessarily include government-implemented taxes and airline-applied fees, irrespective of whether or not the taxes or fees are reimbursable to airlines.

New Refund Rules by USDOT: What does it mean for you?

The new refund rules by the USDOT are the ultimate end to all types of bait-and-switch tricks that airlines have been experimenting with ever since. Airlines often use such tactics to disguise the actual costs of flights by showing a discounted figure on the surface. They also advertise fares that seem like the full cost of the tickets, but they apply only to a particular portion of the ticket price.

The new rule prohibits all airlines from promoting such discounts off a low base cost, especially when the rule does not clarify the mandatory carrier-imposed fees underneath the low fare. Additionally, the DOT has imposed penalties on airlines for violating consumer protection and has collaborated with agencies to expedite complaint resolutions.

The new rules also ban family seating fees, mandate refunds for flight disruptions, and improve accessibility services for the differently abled, thereby increasing airline accountability.

Written by: Click2Refund