Airlines will now be required to give automatic cash refunds for canceled and delayed flights

The Biden administration has finalized rules requiring airlines to automatically refund cash for canceled or significantly delayed flights. The Transportation Department mandates refunds within a few days for delays lasting three hours domestically and six hours internationally, removing airlines’ discretion on refund triggers. While airlines can still offer travel credits or alternative flights, consumers have the right to refuse. The rule also applies to checked-bag fees if luggage is delayed, and airlines must disclose fees upfront for services like seat selection. This move aims to enhance transparency and save consumers over $500 million annually. The regulations, part of a broader push against “junk fees,” will roll out gradually over the next two years.

Source: AP News