The Biden administration may be running out of time, but Transportation Secretary Pete Buttigieg is using what’s left of its power and platform to change the dynamic between frustrated airline passengers and the airlines that frustrate them.

Buttigieg released a video explaining new regulations in place at the DOT demanding compliance from airlines when it comes to reimbursements – and sounding the death knell for the dreaded “airline vouchers.”

“No more airline coupons,” Buttigieg says, also revealing that airlines will be required to issue refunds the same way they accepted payment in the first place.

If you pay with a credit card, if an airline cancels your flight or rebooks you on a flight you don’t want, etc., they must “automatically” refund your money within seven days and return the funds to the credit card. credit you used. paid with.

You may have heard about our department’s new rule requiring airlines to offer automatic refunds for canceled or significantly delayed flights.

Here’s what that means: pic.twitter.com/7xbo9sUKNf

– Secretary Pete Buttigieg (@SecretaryPete) November 21, 2024

Part of the drive behind the Department of Transportation’s regulations is to get airlines to police themselves, avoiding maneuvers that would lead to refunds and unhappy customers – because cash back is more painful for customers. financial results than the good ones, especially since many good ones are lost. not redeemed.

Another article from Buttigieg cites record on-time performance rates so far this year, indicating that the threat of regulation has had an impact. According to Buttigieg, 2024 saw “record air travel with the lowest cancellation rate in years.”

This year has seen record air travel, with the lowest cancellation rate in years.

As the Thanksgiving season approaches, we expect more record-breaking travel and are working to ensure travelers and the system are prepared.

– Secretary Pete Buttigieg (@SecretaryPete) November 20, 2024

Key elements of the new reimbursement rules, taken from dot.govare bullets below:

• Automatically: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.
• Promptly: Airlines and ticket agents must issue refunds within seven business days of the refund due for credit card purchases and within 20 calendar days for other payment methods.
• Cash or original method of payment: Airlines and ticket agents must issue refunds in cash or in the form of the original payment used to make the purchase, such as a credit card or airline miles. Airlines cannot substitute cash refunds owed to consumers with vouchers, travel credits or other forms of compensation unless the passenger expressly chooses to accept alternative compensation.