Airline Accountability Takes Off: New Rule Means Your Refund Is Automatic

A Note From Patricia:

Hello and welcome to Forbes Advisor’s Weekly Brief, where we dive into the realities of consumer finance and empower you with knowledge to help make your financial journey easier.

You can plan your holiday flights with a bit more confidence after the Department of Transportation instituted a new rule offering automatic refunds to passengers affected by significant flight delays or cancellations.

If your flight issues meet the new criteria, all airlines must automatically issue a refund in cash or the original form of payment within at least 20 days. That means you won’t have to deal with long hold times on the phone, unanswered emails or negotiating with a chatbot about when, or even if, you’ll get your money back.?

Here’s everything you need to know about the new rule and tips for preparing for a busy travel season.??

Sincerely,

Patricia Louis

Editor, Forbes Advisor

Airline Accountability Takes Off: New Rule Means Your Refund Is Automatic

Until now, airlines have had different rules when it comes to offering compensation for flight delays, changes or cancellations.?

In an effort to make life easier for travelers, the Department of Transportation has put a uniform standard in place.?

You are now entitled to automatic compensation if any of the following apply to you:

• Your domestic departure or arrival is delayed by three hours, or international is delayed by six hours
• Your departure or arrival airport is changed
• Your number of connecting flights increases
• Your seat has been downgraded
• If you have a disability and the travel changes are less accessible
• You paid for additional services such as in-flight Wi-Fi, lounge access or seat selection and the airline fails to provide those services
• Your checked luggage is delayed by 12 or more hours on a domestic flight or your checked luggage is delayed 15 to 30 hours on an international flight (you’ll only be refunded the baggage fees and must still file a mishandled baggage claim)

However, it’s important to note that this doesn’t mean you can get both a refund and a new flight. You can only get one or the other, according to the new regulation. For those who still need to make it to their final destination, it might make more sense to accept a rebooking and ask for another form of compensation from the airline, such as a flight voucher, for the inconvenience.?

In addition to knowing your rights, here are a few other things you can do to protect your trip during one of the busiest travel times of the year:

Book with a credit card that offers travel protections. Certain credit cards, especially travel credit cards, offer travel protections when you use that card to book your trip. Different cards offer different protections, but some of the common ones you’ll find are trip cancellation and interruption insurance or insurance if your baggage is delayed or lost. However, eligibility and reimbursement rules also vary by card, so it’s important to read the fine print before booking.

Invest in travel insurance. Traveling costs a lot of money, especially this time of the year. In the event of an emergency before or during your trip, travel insurance can help provide a safety net. Depending on the type of coverage or policy you choose, travel insurance can cover trip cancellations, medical emergencies, lost luggage, flight delays and various other issues that may occur. The average cost of travel insurance is 4% to 6% of your trip costs, according to a Forbes Advisor analysis. Again, it’s important to understand what your specific policy does and doesn’t cover and make sure to read the fine print.

Pack for the worst. When packing your carry-on luggage or personal item, consider filling it with your most essential and important items, such as medication, in the event that your flight is delayed or your luggage is lost. A lot of people don’t realize this but you can also bring solid food items or candy through TSA as well (just no liquids over 3.4 oz), which can come in handy if you anticipate a long wait outside your gate. I have a friend who packs muffins for every morning flight we catch!?

Related Stories:?

• How You Can Save On Pricey Holiday Flights With Travel Rewards In 2024?
• Why We Book Our Holiday Travel A Year In Advance
• The Worst Cities for Holiday Travel, Ranked??

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