Airlines will be required to automatically issue cash refunds to passengers when flights are canceled or significantly delayed under a new Department of Transportation rule.
The new refund rule also will apply to significant wait times for checked bags and when extra flight purchases, such as Wi-Fi, aren’t provided on board.
Airlines have long been allowed to set their own standards for issuing refunds — an oftentimes lengthy process that typically forces passengers to make a refund request by phone or via website. Those policies sometimes shift when flight cancellations increase, the Department of Transportation said in a statement.
The new requirement establishes an airline-wide standard that puts the responsibility on the flight service to automatically offer money back without defaulting to a voucher or credit offer.