If you’re flying during the holiday season, knowing how the new US Department of Transportation airline refund rule might apply is essential. This new rule ensures airlines compensate consumers fairly when air travel fails. However, it has some limitations. You should not assume your travel disruption will automatically qualify for a refund. You should also consider how accepting an airline’s alternative travel arrangements might impact your rights.
Are You Entitled To An Airline Refund Under the Automatic Refund Rule?
You will qualify for an automatic refund if an airline cancels your flight and does not rebook you on a new flight or offer compensation for the cancelation. That compensation can be a flight voucher for future travel or a loyalty reward credit such as points or miles. However, you will not get your money back for the trip once you accept that alternate compensation.
You will also qualify for a refund if you do not accept the airline’s rebooking. You should consider whether the airline’s alternative travel plans are convenient and practical for you. Sometimes, you may be better off booking a new ticket with a different airline and getting your refund from the airline that canceled your original flight.
While many airlines will offer passengers additional accommodations, such as hotel or meal vouchers and transportation, during service failures, you should ask for details before accepting the alternate itinerary.
What Is A Significant Change Under the Airline Refund Rule?
Along the same lines, you are entitled to a refund if the airline changes your original itinerary significantly, including the flight schedule, connections, destination or service. The US DOT defines “significant” changes as follows:
- If a domestic flight departs 3+ hours earlier or arrives 3+ hours later than scheduled
- If an international flight departs 6+ hours earlier or arrives 6+ hours later than initially scheduled
- If the departure or destination airport changes
- If you have to make more connections to reach your destination
The rule also applies when the airline downgrades your travel class. For example, if you paid for a first-class ticket and are asked to fly in economy class.
This August, rapper Juvenile, whose legal name is Terius Gray, walked off an American Airlines flight after being downgraded. When the cabin crew on his New Orleans to Dallas flight informed him the seat change, Gray took to social media to express his disappointment. His wife, who was traveling with him, retained her first-class seat. American Airlines explained that an aircraft change led to a shortage of first-class seats and prompted an automatic downgrade of randomly selected passengers. The angry rapper took a flight with a different airline.
Delta Air Lines earned the displeasure of actor and K-pop star Hyeri last year for downgrading her first-class ticket to economy class on a U.S. domestic flight without issuing a refund. Delta explained the downgrade was also due to an aircraft change. However, with the new U.S. DOT rule, Juvenile and Hyeri would both qualify for an automatic refund and so would any passengers going through the same thing, celebrities or not.
The U.S. DOT also considers the needs of disabled travelers. A change is significant if it includes connecting at different airports or flying on other aircraft that are “less accessible or accommodating” to a passenger’s disability.
The airline may offer other compensation for any significant changes. However, once you accept that offer, you will not qualify for a refund.
How Does The Airline Refund Rule Apply To Airline Ancillaries?
With the US DOT’s new refund rule, you may be eligible to get back any additional services you paid for when booking your ticket under certain circumstances.
For example, you can qualify for a refund of whatever you paid for checked baggage. You must file a mishandled baggage claim with the airline at the airport so there is a record of the service failure. If the airline fails to deliver your bags within 12 hours from when your plane was at the gate for a domestic flight and by 15-30 hours after your plane reached the gate for an international flight, you qualify for a baggage fee refund. The rule gives airlines more time to deliver luggage depending on how long the flight is, but 30 hours is the upper limit.
If you paid for in-flight Wi-Fi but the service doesn’t work, you will also qualify for a service refund. If you paid for a specific seat and were asked to sit elsewhere, you qualify for a refund of the seat selection fee. You may also be eligible for a refund of any payment for in-flight entertainment if the service is unavailable.
It’s important to understand that these ancillary refunds only apply when an airline charges you for the service. You are not due automatic compensation during the failure of any free Wi-Fi or in-flight entertainment included in your base fare. Also, these service failures do not obligate airlines to offer a full refund of the value of your ticket so long as the flight takes place according to the original booking.
Jessica Chastain suffered social media backlash in October after failing to understand this limitation. The Oscar-winning actress contacted JetBlue on X, formerly Twitter, asking for a refund because the in-flight entertainment did not work during a six-hour flight. The airline offered the actress a $15.00 voucher for the inconvenience, but Chastain felt this wasn’t enough.
“Thank you @JetBlue for your $15.00 credit. My flight was $1,500 and the credit is 1/100 of the money I paid you,” Chastain posted.
An airline representative on X expressed regret, but Chastain replied, “I understand but I spent $1500 on the flight and so did my husband. There should be some flight credit or something since I have a TrueBlue account and have been a loyal customer.”
Whether or not you can relate to Chastain on this point, the reality is that airlines only make around $6.15 on average per passenger carried in profit, as reported by the International Air Transport Association. Everything else goes to cover the costs of getting you there.
Still, travelers in the U.S. now have more rights when traveling by air. You can make wiser choices, saving money and hassle, if your holiday travel plans go awry.
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