Airlines in US ordered to provide automatic refunds to travellers for cancelled flights

 the US will now have to provide automatic refunds to travellers if flights are cancelled or significantly altered under new US Department of Transportation rules, a significant change for consumers that could drive up costs across the industry.

The final regulations released Wednesday outline the circumstances where passengers are entitled to refunds for all travel to, from and within the US. 

The goal is to make it easier for people to get money back and to make refund policies more consistent from one airline to the next.

According to the department, complaints related to airlines and ticket agents rejecting or delaying refunds made up 87% of all air-travel service complaints at the height of the Covid-19 pandemic in 2020.

Under the new rule, passengers will be entitled to refunds if there is a “significant change” to their flights. These include:

- Departure or arrival time that moves by more than three hours domestically or six hours for international flights

- Being downgraded to a lower class than originally purchased, as from first class to economy

- Change of departure or arrival airport

- Increase in number of connections

- Changes to connecting airports or planes flown if they are less accommodating for people with disabilities

Travellers will also get refunds for checked bag fees if the bag is lost and not delivered within 12 hours of a domestic flight’s gate arrival. International flights will have from 15 to 30 hours to return a lost bag, depending on their length.