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New Federal Rule Guarantees Cash Refunds for Flight Delays and More

New Federal Rule Guarantees Cash Refunds for Flight Delays and More

It looks like travelers may enjoy smoother sailing ahead thanks to a federal rule issued this spring by the U.S. Department of Transportation (DOT). Next time your flight gets delayed, your luggage goes missing, or the wi-fi you paid for won’t work, you’re entitled to a cash refund. And no—you don’t have to drown in paperwork to see that money.

Here’s the lowdown: if your travel is pushed back by over three hours domestically or six hours for international flights, you’re due a full cash refund. And if your luggage isn’t on the carousel within 12 hours after a domestic flight or between 15 to 30 hours internationally, that refund is yours. Plus, if you purchased wi-fi, a specific seat, or in-flight entertainment and the airline doesn’t delivery, you’ll see your money back.

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

The DOT’s move is a game-changer, setting clear cut conditions for when airlines have to cough up refunds. Previously, airlines had the freedom to decide when they would give your money back, leading to a mishmash of different policies. This made it super tricky for passengers to determine and assert their rights. Plus, the DOT was getting an earful about some airlines tweaking their policies to be less generous, especially when cancellations and changes were through the roof.

But there’s more! The DOT is also making airlines disclose all potential fees upfront—everything from carry-on bags to flight change fees. They believe this measure against tricky “junk fees” could save travelers more than $500 million a year, according to a White House press release.

These initiatives are part of the Biden administration’s efforts to enhance consumer protections and reduce frustrating, unexpected travel costs. So, your next trip might be a bit smoother—that is, financially speaking.

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