Fly Confidently: Quick Compensation for Flight Disruptions!

We don’t want anything to go wrong when we travel, but sometimes it does. One of the most common mishaps our clients encounter is a canceled or delayed flight. Usually, we can help them get on another flight fairly quickly, and their trip won’t be seriously disrupted. Sometimes, though, things can go catastrophically wrong. Whether the airline’s mishap affects you short-term or long-term, it’s nice to know that now, you will be compensated for your trouble.

            Last April, the Department of Transportation issued new rules that dictate how airlines must handle customer refunds for flight cancellations, delays and other disruptions. The rules are now in effect. There are clear standards for what constitutes a delayed flight, and refunds must be provided within 20 days.

            Transportation Secretary Pete Buttigieg said, “Passengers deserve to get their money back when an airline owes them, without headaches or haggling.” It took about six months for DOT to get things squared away with the airlines, but as of October 28, the new rules are in place. Here are the highlights:

·         All customers are now entitled to automatic refunds of their original payment when an airline cancels a flight for any reason. This catches U.S. travelers up to Europe, to a certain extent; since 2004, European airline customers are entitled to payments up to 600 euros for a flight disruption. Until now, American travelers would usually be frustrated by airlines pushing vouchers or flight credits in lieu of refunds. Sometimes customers were directed to call a customer service line (usually an unpleasant experience) or fill out a long form. The new rules allow passengers to request a full refund to their credit card or cash, whichever they used for their original payment. If they’ve already traveled partway on their original flight, they are not refunded for the segment completed.

·         Passengers are entitled to refunds for a “significant change” in the flight schedule, and DOT has defined what that means: a change in departure or arrival time greater than 3 hours for domestic flights or 6 hours for international; a change in either arrival or departure airport; an additional connection that wasn’t on the initial itinerary; a downgrade in the class of service previously booked and paid for. Disabled passengers can also get a refund if they’re routed to a different airport or aircraft that is less accessible.

·         Passengers must decline the airline’s offered alternative flight to be eligible for the refund. Airlines must also automatically refund a passenger if they can’t provide a service upgrade, like premium seating or onboard WiFi, if already paid for.

·         Here’s a big one: airlines must now refund bag fees if they don’t deliver your checked baggage within a certain time of the flight’s arrival. That time limit is 12 hours for a domestic flight or 15-30 hours (depending on the length of the flight) when an international flight arrives. You’ll still have to fill out a “mishandled baggage” report with the airline to get the refund.

·         Gone are the days when we were due a refund but had to wait a long time for it, even after promptly filling out all the paperwork. There are now strict requirements for airlines to process claims: 7 business days for credit card payments, 20 for other payment methods.

·         There are several circumstances in which airlines will have to automatically issue refunds, meaning passengers won’t be stuck with massive paperwork or long waits on customer service lines.

·         Passengers’ rights are also affected by the new rules. If you can’t fly because you’ve been restricted by a government, or advised against it by a doctor, due to a “serious communicable disease,” you will now be entitled to a transferable voucher valid for five years from the date of issue. Airline vouchers have traditionally been non-transferable and valid for only a year. This rule goes into effect next April.

·         Finally, airlines are required to inform passengers that they are entitled to a refund for a canceled or significantly altered flight. If the airline doesn’t do this and its customer service doesn’t resolve the issue, passengers can now file a complaint with the DOT.

Airlines don’t like to be socked with government penalties. Since 2020, they’ve had to pay $164 million in fines, according to the DOT. This may be why flight cancellations hit a record low of 1.2% in 2023. But if you happen to be in that 1.2%, it’s not much fun. At least now it won’t be terribly costly. Ready to get out there and see how the airlines are doing? Give us a call!