U.S. airlines are now mandated to automatically refund passengers for canceled or significantly delayed flights, even if passengers don’t request a refund.
The Department of Transportation (DOT) implemented the rule to ensure that passengers receive cash refunds instead of vouchers, aiming to simplify the process ahead of the busy holiday season.
According to Transportation Secretary Pete Buttigieg, the rule ensures customers won’t face issues or hassles to get their money back. Airlines are required to issue refunds within seven business days for credit card purchases and within 20 calendar days for other payments.
While airlines initially opposed the rule, Airlines for America, an industry group, expressed support for it as a way to accommodate passengers’ choices.