The Department of Transportation expects the automatic refund rules to allow consumers to avoid more than half a billion dollars in airline fees annually. Credit: Ekaterina Pokrovsky/stock.adobe.com
Starting later this year, airlines will be required to provide automatic cash refunds when a flight is canceled or significantly changed, checked bags significantly delayed or if extra airline services, such as Wi-Fi, become unavailable after purchase, according to updated rules from the Department of Transportation (DOT).
The rules were updated to clarify when an airline must provide refunds. Prior to the update, air carriers set their own standards for when refunds would be issued. The department received consumer complaints claiming that airlines would revise and apply less consumer-friendly refund policies during periods that saw higher volumes of flight cancellations and changes.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
