New DOT Rule Mandates Automatic Refunds for Delayed or Canceled Flights

Airlines must now issue prompt cash refunds for significant schedule changes without requiring passenger requests.

U.S. airlines are required to automatically refund passengers for flights canceled or delayed significantly, defined as over three hours for domestic flights and six hours for international flights.
The rule also covers changes in departure or arrival airports, increased connections, and downgrades in service class.
Refunds must be processed within seven days for credit card purchases and 20 days for other payment methods.
Passengers will receive refunds for delayed or missing checked baggage and prepaid services like Wi-Fi that are not provided.
The new regulation aims to reduce flight disruptions by incentivizing airlines to improve scheduling and service reliability.