New rules for US airlines mean guaranteed money for flight delays – what to do if you get travel credit

THERE is nothing worse than arriving at the airport and seeing the word “cancelled” next to your flight number.

However, a new ruling means that US airlines will have to offer financial compensation to delayed passengers.

Airlines will soon have to automatically issue cash refunds for issues like delayed or canceled flights.

The final decision was issued by the Biden administration on Wednesday and is expected to take effect within the next two years.

According to the Department of Transportation, airlines will be required to provide automatic refunds within days of canceled flights or “significant” delays.

Currently, airlines have the freedom to decide how long the delay period should be to guarantee a refund.

According to the new legislation, a significant delay will refer to flights with a minimum duration of three hours for domestic flights and six hours for international flights.

Airlines may offer another flight or travel credit, but consumers may reject the offer in favor of a cash refund.

While travel complaints have peaked during the Covid-19 pandemic, Airlines for America, a trade group for U.S. air carriers, noted that refund requests have fallen sharply since mid-2020.

A spokesperson for the group highlighted that airlines have incorporated flexible measures “to increase accessibility to air travel”.

According to the group, the 11 largest U.S. airlines issued $43 billion in customer refunds from 2020 to 2023.

Airlines for America estimated the rule will save consumers more than $500 million a year.

The rule also applies to refunds for checked baggage fees if the baggage is also delayed.

Under the new legislation, if your luggage is not delivered within 12 hours for domestic flights or 15 to 30 hours for international flights, you will be able to claim a refund of your check-in fees.

It will also apply to in-flight fees including seat selection or internet connection if the airline does not provide the service.

The Department of Transportation also issued a rule requiring airlines and ticket agents to disclose their cancellation and change reservation fees in advance.

ADDITIONAL FEES

This means potential rates should be shown the first time customers see a price and schedule when booking online.

Airlines will also be required to inform passengers that they have a guaranteed seat at no additional cost.

However, airlines will still be able to charge people for choosing specific seats.

Many airlines charge additional fees for passengers who wish to choose their seats, including those located in the exit rows or at the front of the cabin.