$5 Billion in Refunds: New US Transportation Rules Force Airlines to Compensate for Flight Delays and Cancellations

The US Department of Transportation’s new rules require airlines to provide cash refunds for significantly delayed or canceled flights.

New Rules Mean Refunds for Inconvenienced Fliers

The US Department of Transportation has introduced new rules that will force airlines to give passengers cash refunds when flights are significantly delayed or canceled. This means that fliers can expect significant compensation for flight delays and cancellations.

Airlines Must Provide Clear Refunds

Under the new rules, airlines must clearly disclose fees and provide refunds for flight delays and cancellations. This includes domestic flights delayed over three hours international flights delayed over six hours and changes to departure or arrival airports, according to the report of Shreveport Times.

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(photo: Business Insider)

Refunds Will Be Issued Automatically

Passengers will automatically receive refunds when a flight is canceled or significantly changed. Airlines must issue refunds within seven days for credit card payments and 20 days for other forms of payment.

Travelers Could Receive Big Refunds

According to a study, last year’s flight delays and cancellations would have resulted in a total of $5 billion in refunds if the new DOT rules had been in effect. United Airlines would have paid out the most in refunds with an estimated $1.3 billion.

Travelers don’t get a refund if they accept alternative transportation or travel credits from the airline. Airlines must also provide refunds if checked bags are not delivered on time or if prepaid services are not provided. With these new rules travelers can expect more transparency and compensation for flight delays and cancellations.

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