New DOT Regulations: Airlines Must Provide Cash Refunds for Flight Cancellations and Delays

The Department of Transportation (DOT) has recently finalized regulations that mandate airlines to promptly reimburse passengers in the event of flight cancellations, delays, or significant alterations to flight schedules. Regardless of the reason for flight cancellations, airlines must refund passengers in cash or through the original payment method. Alternatively, travellers can opt for travel credit, alternative transportation arrangements, or an alternative flight provided by the airline.

Moreover, if there are substantial changes to a flight itinerary, passengers can request a refund if they do not accept the airline's proposed alternative travel options. This includes changes such as a three-hour or more delay for domestic flights or a six-hour or more delay for international flights in departure or arrival times. The policy also extends to situations with changes in departure or arrival airports.

Additionally, if there are significant delays in the delivery of paid checked bags, airlines must refund passengers for the baggage fee. This refund is applicable if passengers do not receive their bags within specific time frames, such as 12 hours after the arrival of a domestic flight at the gate or within 15–30 hours after the arrival of an international flight.

Furthermore, the DOT has announced plans to enforce greater transparency regarding additional fees, such as those for checked bags and cancelling reservations, by requiring airlines to disclose these fees before passengers purchase tickets.

"Airlines should compete with one another to secure passengers'business—not to see who can charge the most in surprise fees,"US Transportation Secretary Pete Buttigieg said in a statement."DOT'snew rule will save passengers over half a billion dollars a year in unnecessary or unexpected fees by holding airlines accountable for being transparent with their customers."

The DOT's new regulations will be phased in over the next six to 12 months, ensuring greater protection and transparency for air travellers in the event of flight disruptions.