Airlines will soon have to issue automatic refunds if your flight is delayed or bags are lost

Starting June 25, 2024, a new U.S. Department of Transportation rule will mandate airlines to automatically refund passengers for significant delays, cancellations, or lost luggage. This rule, announced by the Biden administration, aims to simplify the refund process and ensure passengers receive cash refunds promptly. Eligibility for refunds includes delays over three hours, changes in airports or flight paths, and unprovided paid services. Refunds must be issued within seven business days for credit card payments and 20 days for other methods, covering the full ticket price minus any used portion.