PHOTO: ADOBE STOCK

As we head into the hectic holiday travel season, new federal rules just went into effect that will provide more compensation if your flights are significantly delayed or canceled or your luggage is mishandled. 

The new rules, which were drafted by the Biden Administration in April and took effect on Oct. 28, will make it easier for travelers to obtain refunds when airlines “cancel or significantly change their flights, significantly delay their checked bags or fail to provide the extra services they purchased.”     

Those would include refunds of fees paid for services such as Wi-Fi, seat selection or inflight entertainment. The new rules will be enforced by the U.S. Department of Transportation.

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The DOT created this rule in response to the number of complaints from travelers against airlines for their handling of refunds during the COVID-19 pandemic. In fact, 87% of the complaints fielded by DOT in 2020 involved refund issues. 

According to a report in Blue Sky News, the news service for Pittsburgh International Airport, the DOT defines significant change “as domestic flights delayed more than 3 hours and international flights delayed more than 6 hours; a departure or arrival change to a different airport; an increase in the number of connecting flights to an itinerary; instances when passengers are downgraded to a lower class of service; and connecting flights changed to airports, flights or aircraft that are less accessible for passengers with a disability.”

On baggage, travelers are entitled to a refund on their checked baggage fee if their luggage is not delivered within 12 hours of a domestic flight’s arrival time or 15-30 hours of an international flight’s arrival time.

Airlines are also required to provide “prompt notifications” to consumers impacted by delayed or canceled flights of their compensation rights to their tickets and extra service fees. 

The new guidelines also require airlines to provide travel credits or vouchers to those who are unable to travel because of government restrictions imposed during a communicable disease or on the advice of a medical professional. 

According to the DOT, the new rules require the refunds to be:

• Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.
   
• Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.
   
• Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation. 
   
• Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.

Make sure you hold on to documented evidence for these requests. Travel credits or vouchers must be transferable and valid for at least five years from the date of issuance, the rule states.