New US DOT rule requires airlines to ""promptly"" refund cancelled or delayed flights

The US Department of Transportation (DOT) has issued a final rule requiring airlines to ""promptly"" provide automatic cash refunds to passengers when their flights have been cancelled or ""significantly changed"". The significant changes to a flight include departure or arrival time that are more than three hours domestically and six hours internationally. ""Passengers deserve to get their money back when an airline owes them - without headaches or haggling,"" said US transportation secretary Pete Buttigieg. ""Our new rules sets a new standard to require airlines to promptly provide cash refunds to their passengers."" The rule also includes refunds on checked bag fees for baggage returns that have been delayed over 12 hours domestically or over 15-30 hours internationally, depending on the length of the flight. Additionally, airlines will have to provide refunds for extra services, such as wi-fi, seat selection, or inflight entertainment, if the airline fails to provide them. The final rule requires the refunds to be automatic, prompt, as well as the full amount due in cash or original form of payment. It requires airlines to also provide customers with swift information about their right to refund if they have affected by delayed or cancelled flights. Refunds must be issued within seven business days under the new rule. Airlines will also have to clearly disclose any hidden fees, or ""junk fees"", that apply to baggage, reservation changes, or discounts that only apply to partial flights. The DOT hopes the rules will usher in consistency and certainty for US air passenger customers. The government body is now looking to propose the ban of hidden fees for family seating, as well as to ensure passengers are cared for through mandatory compensation and amenities in the event of flight cancellations or delays. It also aims to pursue the expansion of rights for passengers who use wheelchairs to ensure that they can ""travel safely and with dignity"". Seeking Alpha had reported on April 24 that US airlines had saw shares decrease following the announcement of the new rule.