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Travel expert explains new requirement for airlines to automatically refund canceled flights
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Travel expert explains new requirement for airlines to automatically refund canceled flights

New federal regulations took effect this week and requires airlines to make it easier for ticketed passengers to get their money back after a cancellation or other significant flight change.

As peak holiday season approaches, when millions of Americans are expected to take off, travel expert Katy Nastro shared his key takeaways from the Department of Transportation’s new rules that people should keep in mind.

“Flight disruptions are stressful. The only other thing comparable to that level of travel stress might be dealing with refunds when you choose not to get rebooked by the airline,” Nastro told “Good Morning America. “As we head into one of the busiest times of the year, the new DOT regulations are like an early gift for travelers. Fast, hassle-free refunds within seven business days on your way to payment are a long way from the Weeks, sometimes months, we have seen people wait in the past.

What is covered by the Department of Transportation’s new airline ticket refund policy

In this Dec. 21, 2023, file photo, travelers wait to check in at the American Airlines counter at San Francisco International Airport (SFO) in San Francisco.

Bloomberg via Getty Images, FILE

Nastro, a frequent globetrotter and spokesperson for Going Travel App, shared key takeaways from the new policy below.

Streamlined Refunds: Travelers can now easily receive automatic refunds if they choose not to take a changed flight due to significant disruptions, making the refund process much simpler than before. However, this does not mean that travelers can get both a refund and a new flight, the regulation only covers one or the other.

Clear definitions of disruptions: Significant disruptions are now clearly defined for all airlines: three hours or more for domestic flights and six hours or more for international flights. Previously, when it came to determining the length of a significant delay, time slots varied among most airlines. Some considered 90 minutes to be significant, while others considered four hours or more to be significant.

In this July 19, 2024 file photo, flight information is seen on a display screen at Ronald Regan National Airport in Washington, DC.

Giorgio Viera/AFP via Getty Images, FILE

Refunds for baggage delays: If a bag is delayed for more than 12 hours (or 15 to 30 hours for international flights), travelers are entitled to a refund of baggage fees. Before this new ruling, when an airline misplaced a bag, it was up to them to decide whether or not they would refund the baggage fees paid.

Reimbursements for ancillary services not performed: If airlines do not provide ancillary services (like Wi-Fi or lounge access), travelers now have the right to request reimbursement for these services.

24/7 customer service: Airlines are now required to provide live communication channels with 24-hour customer service, whether through live chat or telephone support.

In this Dec. 27, 2022, file photo, travelers wait to check in at the American Airlines counter at San Francisco International Airport (SFO) in San Francisco.

Bloomberg via Getty Images, FILE

“What’s interesting is that the standard times for what constitutes a significant delay have actually increased for most airlines,” Nastro pointed out, noting for example that Delta had previously set a threshold of 90 minutes.

She added: “The two airlines that are trying to go further are American Airlines and Alaska. American will keep more than four hours as the international (reimbursement) threshold for significant delays, while Alaska said it would use an hour or more. rather, it is the reimbursement threshold for domestic – controllable – delays.”

What the new DOT airline refund policy doesn’t cover and what consumers might be missing

In this July 19, 2024 file photo, flight information is seen on a display screen at Ronald Regan National Airport in Washington, DC.

Nathan Howard/Getty Images, FILE

Nastro shared some additional information that she said consumers should be aware of when considering how the new policy works.

“While most of the new rules are good news for travelers, some nuances remain,” she said. “For example, if you fly Delta, United, or Jetblue often, the new (reimbursement) threshold of more than three hours for long delays is actually longer than the policy those airlines had in place previously, which which makes this window even wider.”

“Additionally, there may not be some continuity with the airlines as to how long you (will have to wait before) seeing a credit card refund during this seven business day window or how they’re going to handle refunds for downgrades,” Nastro noted. “Does going from extra legroom to normal legroom count? Some airlines might answer yes, while others don’t. The best advice is to check the new rulesbut understand that there may still be differences to manage.”