The U.S. Department of Transportation (DOT) has rolled out new regulations aimed at making refunds simpler and faster for airline passengers facing significant disruptions.
These rules, which came into effect this week, promise timely refunds within seven business days and clearer criteria for qualifying disruptions. Here’s what Australian agents need to know about the changes affecting U.S.-based airlines.
Streamlined Refunds for Major Delays
Under the new rules, ticketed passengers can now opt for an automatic refund if their flight is disrupted and they choose not to take a rebooked option. This eliminates lengthy waits and provides travellers with a direct refund for cancellations or significant changes. However, passengers must choose between a refund or a rebooked flight, not both.
Defined Delay Thresholds
The DOT has set clearer definitions for “significant” delays, standardising the minimum time required for a refund request: three hours for domestic flights and six hours for international. Previously, airlines varied widely, with some counting delays as short as 90 minutes and others four hours or more.
New Rights for Baggage and Ancillary Services
Travellers are now eligible for bag fee refunds if checked luggage is delayed over 12 hours (15-30 hours for international flights). Additionally, if airlines fail to deliver on purchased services—such as Wi-Fi or lounge access—travellers can request a refund for these ancillary fees.
24/7 Customer Support Requirement
All U.S. airlines are now required to maintain round-the-clock customer service via live chat or phone, aiming to improve support and response times for passengers dealing with disruptions.
Key Tips and Nuances for Travellers
While the new rules bring much-needed consistency, some refund timelines may differ slightly between airlines within the seven-day period. It is advised that travellers to check specific policies, as thresholds may vary—especially for downgraded services, where definitions may still be flexible across carriers.
