Airline Passengers To Receive Automatic Refunds Under New U.S. Rule For Flight Disruptions

A new FAA ruling allows consumers to receive a full refund due to flight disruptions and cancelations.

The next time you experience a flight disruption, a new airline rule could lead to a full refund.

Thanks to the rule, made possible by the Federal Aviation Administration (FAA) Reauthorization Act signed into effect by President Joe Biden, airlines now must automatically refund money to passengers when flights are canceled or significantly delayed.

“What you used to get by default was a trip credit,” said Kevin Brasler, executive editor of Consumers Checkbook. “Now you’re entitled to a refund, and the refund has to be automatic.”

He added, “I think this will, this is a big benefit. And it really does improve things in terms of it eliminates a lot of confusion about what happens when you’re entitled to a refund.”

The flight disruption refund also includes any taxes or extra fees, such as seat selection. Additionally, the returned funds will be paid out in the same way that the customer paid. For both airlines and travel agents, the refund should be expected within seven business days if paid by credit card. If the ticket was purchased via cash or check, the airline courier has 30 days to issue a refund.

On the other hand, experts stress the importance of consumers notifying the airlines if their trip is canceled via a delay rather than being a no-show, because different rules may apply when it comes to a refund.

“At the end of the day, that’s money that belongs to consumers,” said John Breyault of the National Consumers League. “And they paid it for a service that the airlines didn’t provide them. Then they need to provide a refund.”

Another change happening along with the flight disruption refund, per the new ruling, is that families will no longer be required to pay a fee if traveling with small children. Typically, to sit with their kids, passengers could pay at least $95 more for international flights and upwards of $35 for domestic flights.

New rules are expected to go into effect starting in the fall, which means they’ll be in place just in time for the holiday travel season.