Earlier this year, Transportation Secretary Pete Buttigieg announced that the era of airlines screwing customers over is coming to an end. Under a proposed new rule, the DOT would require airlines to give customers automatic refunds when their flight is either significantly delayed (defined as more than three hours domestically and six hours internationally) or canceled. This means airlines would have to stop saying things like “I’m sorry, but a voucher is the best we can offer you.” While parts of the DOT’s “cash back” rule went into effect back in May, the rest of it went into effect on Monday. With the holiday travel season coming up fast, here’s a look at what the new rule entails:

Refunds for canceled flights are now provided automatically: Even before the new rule was announced, the DOT required airlines to provide refunds to travelers whose flights were canceled, so long as they chose not to take alternative flights offered by the airline. The DOT’s policy clarifies how and when these refunds need to be processed. Under the latest guidelines, an airline must provide the refunds automatically, without passengers specifically requesting them. Airlines and ticket agents are also required to complete the refund within seven days for credit card purchases, and 20 days for other forms of payment. The refunds must be made to the original form of payment – they cannot be covered by airline vouchers or credits if the tickets weren’t paid for that way. And, the refunds must cover the full, unused value of the ticket.

What’s not required: Airlines will not be required to issue refunds for segments of an itinerary that were already flown before the trip was canceled.

Defining significantly delayed or changed flights:: The bigger change to the DOT’s policy is how it clarifies what counts as a significant delay. Where the previous policy was ambiguous, the new rule specifies that delayed flights become refund-eligible after three hours for a domestic itinerary or six hours for an international itinerary. These time limits apply both to departure and arrival delays. The policy also covers “significantly changed” flights, which the DOT explains means “departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.”

Same rules as the above: All of the refund guidelines for cancellations also apply to delayed flights. That is, the refunds must be issued automatically, in full, to the original form of payment.

Refunds for baggage issues: Passengers are now also entitled to get checked bag fees refunded if their luggage does not arrive in a timely manner at their destination. Under the DOT’s new rule, bag fees become refundable for passengers who file a mishandled baggage claim if their luggage isn’t delivered within 12 hours on a domestic itinerary, or 15-30 hours on an international itinerary, depending on the length of the flight.

Airline fee reimbursements: The DOT’s rule also requires airlines to issue refunds for fees like inflight Wi-Fi, seat selection or inflight entertainment if the passenger paid for such a service but it was non-functional or unavailable during their flight.

Medical and government travel exemptions are coming soon: Passengers will soon also be entitled to airline credit valid for at least five years from the issue date if they are restricted by a government or advised by a medical professional not to travel because they have been diagnosed with a serious communicable disease after booking a flight. The DOT’s policy said airlines can require passengers applying for this credit to provide documentary evidence to support their request. This part of the policy doesn’t fully take effect until May.

[From USA Today]

This is great news! When my family and I flew out to San Diego for Comic-Con this past summer, I spent hours on the phone with different reps from American Airlines because we had been given vouchers in August 2023 after we had a flight canceled. Since our trip was in July 2024, I assumed we could just use those towards our tickets. NOPE! AA’s rule was you had 12 months to use the vouchers from the date of purchase, which means if you bought your tickets six months out, you had to use them within the following six months to not lose your money. Bitches, I cannot even tell you how pissed I was, lol. It was complete BS. This new rule will make sure that never happens again. Thank you Sec. Pete.

It’s important to reiterate that for the delayed or canceled flights, you’re only entitled to get an automatic refund back to your original payment method as long as you do not accept any alternate offers from the airline, like being switched to a new flight. When it comes to consumers rights, Sec. Pete really has been doing great stuff as head of the DOT. That said, I don’t trust any airline to not try to pull shenanigans, though, so make sure you know your rights. Secretary Pete is really good about posting to social media like Threads, Instagram, Twitter, and TikTok, so if you’re in a pinch, you can always pull up his account on your preferred platform to verify what you’re legally entitled to.

View this post on Instagram

A post shared by Secretary Pete Buttigieg (@secretarypete)

Embed from Getty Images

Photos credit: POOL via CNP/INSTARimages.com, Getty