New Rule Requires US Airlines to Give Automatic Refunds for Canceled or Delayed Flights and Late Baggage

The White House has issued a new rule mandating U.S. airlines to automatically and promptly refund passengers for canceled or significantly changed flights, as well as for significantly delayed baggage. This rule defines specific conditions for refunds, aiming to simplify the process and ensure passengers receive cash refunds directly, without having to navigate cumbersome request procedures.

The rule also extends to refunds for extra services not provided, such as Wi-Fi or seat selection, and mandates that refunds be issued within seven business days for credit card purchases and 20 days for other payments. Additionally, the rule requires airlines to notify passengers of their rights to refunds and related policies whenever flights are canceled or significantly altered.