ATLANTA — With the Thanksgiving travel rush here, airports across the U.S. are bracing for record-breaking passenger numbers, including at Hartsfield-Jackson Atlanta International Airport.
The Transportation Security Administration (TSA) is preparing for an exceptionally busy travel period, but experts also warn that weather disruptions could cause flight delays. Additionally, the Federal Aviation Administration (FAA) has raised concerns about potential air traffic controller shortages, which could further complicate travel plans.
Yet, new federal rules from the U.S. Department of Transportation (DOT) are now in effect, offering passengers protections that can help them recover their money faster if their flight plans are disrupted.
The updated DOT rules mandate automatic refunds for passengers under certain conditions, relieving them from navigating the often confusing and time-consuming process of securing compensation for cancellations or significant delays. Passengers are entitled to refunds if their flight is canceled and the airline does not rebook them, if they choose not to accept a rebooking, or if their flight is significantly changed.
For instance, if it departs more than three hours earlier or later than expected or if the arriving or departing airport is changed. The Department of Transportation lays out such specifics on its website here and also clarifies when automatic refunds are not applicable:
“You are not entitled to a refund if you accept a rebooked flight with the airline or continue with a significantly changed itinerary, the agency clarifies. “However, most U.S. airlines have committed to providing benefits such as hotels for overnight delays or meals for passengers during significant delays and cancellations that are caused by issues within the airline’s control. You can view those benefits at flightrights.gov.”
According to the mandate, refunds must be processed within seven business days of becoming due for credit card purchases and 20 calendar days for other payment methods.
A recent study from the travel website Upgraded Points, which analyzed data from the Department of Transportation, predicts that these new refund policies could cost airlines up to $5 billion annually. According to the study, major carriers, including United, American, and Delta, are expected to face billions in refund payouts due to domestic cancellations and delays.
11Alive reached out to the aforementioned airlines for a response. A spokesperson for Delta shared that “Delta supports and is in full compliance with new rules requiring carriers to provide an automatic refund when a flight is significantly delayed or canceled, and the customer doesn’t take an alternative flight.”
The spokesperson also stated that “Delta has long offered refunds for customers who have a canceled flight and choose not to travel. That doesn’t change under the new rules – customers get a refund for a canceled flight if they choose not to travel. Customers don’t get a refund if a flight is canceled and they fly on the rebooked accommodations that Delta automatically makes and then notifies customers directly.”
Meanwhile, American Airlines responded with the following statement:
“We want all of our customers to have peace of mind when choosing to travel with us. We’re proud of our refund policies, many of which were already closely aligned with the final rule by the Department of Transportation. The bottom line is if we cancel your flight and you choose not to be rebooked, you are entitled to a refund, and we provide that refund promptly.”
While the full impact on the industry remains to be seen, Ronnie Medina, a passenger traveling through Hartsfield-Jackson, said he was pleased with the news: “I think that’s a great idea to help all the customers,” he told 11Alive.
While the new rules offer passengers a sense of security, the study cautions that airlines may need to adjust their operations and raise ticket prices to offset the costs associated with providing refunds. Additionally, there are new rules for refunds related to severely delayed baggage and refunds for extra services customers paid for but were not provided, such as WiFi or seat selection.
