Travel expert explains new requirement for airlines to provide automatic refunds for canceled flights

New federal rules Requirements for airlines to make it easier for ticketed passengers to get refunds after cancellations or other significant changes to flights went into effect this week.

Ahead of the peak holiday season, when millions of Americans are expected to take to the skies, travel expert Katie Nastro shared her top takeaways from the new Department of Transportation rules that people should keep in mind.

“Flight disruptions cause stress. The only thing that compares to this level of travel stress is getting a refund if you decide not to rebook with the airline,” Nastro told “Good Morning America.” “As we approach one of the busiest times of the year, the new DOT regulations are like a gift that comes early for travelers. A hassle-free and timely refund within seven business days back to your payment method is a far cry from the weeks and sometimes months we’ve seen people wait in the past.”

What does the Ministry of Transport’s new airline ticket refund policy cover?

Nastro, a frequent traveler and spokesperson for the Going Travel app, shared key takeaways from the new policy below.

Simplified refunds: Travelers can now easily receive automatic refunds if they decide not to take an overbooked flight due to a major disruption, making the refund process much simpler than before. However, this does not mean that travelers can receive both a refund and a new flight: the rules only apply to one or the other.

Clear definitions of violations: Significant disruptions are now clearly defined for all airlines: three hours or more for domestic flights and six hours or more for international flights. In the past, when it came to significant delays, most airlines’ time windows varied. Some considered 90 minutes significant, others considered four hours or more significant.

Refunds for delayed baggage: If baggage is delayed more than 12 hours (or 15–30 hours for international flights), travelers are entitled to a refund of baggage fees. Before this new regulation, when an airline lost luggage, it was up to the airline to decide whether it would refund the baggage fee paid.

Refunds for unfulfilled additional services: If airlines do not provide additional services (such as Wi-Fi or lounge access), travelers now have the right to request a refund for those services.

24/7 customer support: Airlines are now required to provide 24/7 communication channels for customer service, be it through live chat or phone support.

“What’s interesting is that the standard significant delay time has actually increased for most airlines,” Nastro noted, noting, for example, that Delta previously had 90 minutes as its threshold.

She added: “Two airlines that are trying to take it one step further are American Airlines and Alaska. American Airlines will keep four-hour-plus as its international (return) threshold in case of significant delays, while Alaska said it will use one hour or more. rather, a refund threshold for internal—controllable—delays.”

What the new DOT airline refund policy doesn’t cover and what consumers may miss

Nastro shared some additional points she said consumers should be aware of when considering how the new policy works.

“While most of the new rules are positive news for travelers, there are still some nuances,” she said. “For example, if you’ve been a frequent flyer on Delta, United or Jetblue, the new three-hour (return) threshold for significant delays is actually longer than those airlines’ previous policies, making that window even wider.”

“Additionally, airlines may not have some continuity in how long during that seven business day you’ll have to wait before you see a credit card refund or how they’re going to handle downgrade refunds. “, Nastro noted. “Is the transition from extra legroom to regular legroom taken into account? Some airlines may say yes, while others may not. The best advice is to check new rulesbut understand that there may still be some differences to navigate.”