A bold move in the USA as the Department of Transportation (DOT) has enacted a final regulation mandating that airlines provide cash refunds for cancellations, significant delays, or alterations to flight plans.
According to the new guidelines, airlines must reimburse passengers in cash or the original payment method instead of issuing vouchers, regardless of the cause of the flight disruption, be it weather-related or technical.
This regulation specifies that refunds are warranted if there's a change of three hours or more for domestic flights or six hours for international ones.
Additionally, alterations in departure or arrival airports and the addition of extra connections in the itinerary also qualify for refunds. Furthermore, if airlines fail to deliver paid services like Wi-Fi or experience delays of baggage delivery exceeding 12 hours for domestic flights or up to 30 hours for international ones, passengers are entitled to refunds for those specific fees.
The move could potentially save passengers more than USD 500 million (Eur 465 million) annually. The enforcement of these regulations will unfold gradually over the next 6 to 12 months.
In the UK and Europe - Laws UK261 and EU261 respectively - passengers are eligible for compensation ranging from Eur 250 to Eur 610 for delayed or cancelled flights. This amount primarily depends on the distance of the journey and the duration of the delay, with consideration also given to the notice provided by the airline.
Passengers are also entitled to compensation if a delay results in missing a connecting flight on the same reservation. Under certain circumstances, passengers may even be eligible for a full refund of their airfare. However, exceptions are made for factors “beyond the airline's control”, including adverse weather conditions.
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