The new rule mandates that refunds are automatically processed by an airline if a passenger's flight is "canceled or significantly changed, and they do not accept the significantly changed flight, rebooking on an alternative flight, or alternative compensation."

Airlines in the United States are now required to give passengers cash refunds if their flight is significantly delayed or canceled, even if that person does not explicitly ask for a refund.

The Department of Transportation says the final federal rule requiring that airlines dole out refunds - not vouchers - went into effect Monday. The major change is being implemented only a month before the start of what is likely to be a huge holiday travel season.

Transportation Secretary Pete Buttigieg made the announcement on X after he first presented the proposed rule back in April. “Today, our automatic refund rule goes into full effect,” Buttigieg posted. “Passengers deserve to get their money back when an airline owes them-without headaches or haggling.”

    • partial_accumen@lemmy.world
      31·
      16 hours ago

      I think @[email protected] is essentially referring to the cost of a replacement flight purchase the same day. The obvious answer is that action isn’t required by law and would be massively more expensive for airlines. Rates for regular fares would have to skyrocket to cover the costs, which would create a vicious circle.

      • CmdrShepard42@lemm.ee
        2·
        14 hours ago

        Rates for regular fares would have to skyrocket to cover the costs

        Why is that exactly? Does the airline face additional expenses when you book a flight the same day versus a month in advance?

        • partial_accumen@lemmy.world
          2·
          12 hours ago

          The opposite. They can lose money when you book far in advance. They need the expensive close bookings (usually business travelers) to make the most of their money. So if the airlines are force to give away expensive profitable seats (expensive because they are in high demand), they’ll have to raise the rates on other earlier bookings to make up the difference.