Biden Administration Makes It Easier For Air Passengers To Get Refunds

Under a new Biden Administration rule, passengers whose flights are canceled or “significantly” delayed will have a much easier time pursuing a refund from the airline.

The rule, issued on Wednesday, comes after more than a year of promises by the administration to increase protections for air passengers. The move ensures airlines can’t just give the passengers a voucher for a future flight.

The Transportation Department also issued a rule to force airlines and third-party ticket bookers to disclose add-on fees for items like checked luggage. The rules mark a significant advance for the administration’s approach to the airline industry,

“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

Federal law requires airlines to refund tickets in cash if flights have been canceled for multiple reasons, especially if an airline was at fault for the cancellation. Otherwise, airlines must follow their own corporate policies, which often only include vouchers for future flights.

The new rule will give passengers the right to a refund if their flight is delayed by more than three hours domestically and six hours internationally or canceled for any reason.

Passengers’ money will also be returned automatically in the form that they had paid for the ticket. Airlines will have to provide a refund within seven business days if the ticket was purchased with a credit card and 20 calendar days for other payment methods, such as travel points or miles.