You may have seen in the news, or read some headlines about a new airline flight cancelation rule. This rule states that passengers may be entitled to a full refund if their flight is canceled. I know there are so many people that love to travel. While I don’t really like traveling specifically, I do like the idea of getting adequate compensation when your goods or services aren’t being delivered to the standards, or of the quality that is promised or expected.
With his new rule, If you’ve had a flight canceled recently, you might be owed some cash thanks to this new rule from the U.S. Department of Transportation. But are the airlines actually going to follow through and refund you? This promise has been going on for years. However, are they going to try and pull a fast one like they’ve done so many times before?
The DOT Rule on Cash Refunds for Canceled Flights
As of August 25, 2022, the U.S. Department of Transportation issued a new passenger protections rule that requires airlines to provide cash refunds to travelers if their flight is canceled or significantly changed.
Specifically, the rule states that passengers are entitled to a full refund if their flight is canceled or has a significant schedule change that the passenger does not want to accept. Previously, airlines were only required to give refunds for canceled flights, not significant schedule changes.
However, The Department of Transportation has not provided a clear-cut definition of what counts as a “significant delay” when it comes to requiring airlines to offer cash refunds. There is no set number of hours that automatically triggers the refund requirement. Instead, DOT evaluates on a case-by-case basis whether a delay was significant enough to entitle passengers to a refund. The determination takes into account multiple factors like the total length of the delay, the duration of the flight itself, and the specific circumstances of the individual passenger. So whether you qualify for a mandatory refund due to a delayed flight depends on the particulars of your situation as judged by DOT rather than a one-size-fits-all policy.
This new rule attempts to close a loophole airlines have been exploiting for years by making major schedule changes rather than officially canceling flights to avoid paying cash refunds. Those Bastards! Now there’s less wiggle room – if the flight is canceled or significantly delayed/rerouted, you get your money back. I recall a buddy of mine, in which a return flight while on a vacation was rescheduled to the following day! This caused a series of conflicts, and scrambling to find accommodations and local transportation for example.
Airlines Have Long History of Avoiding Refunds
Of course, this being the airline industry we’re talking about, there’s good reason to be skeptical about whether they’ll actually follow this new rule. The big airlines have a long, sordid history of doing everything in their power to avoid giving passengers their money back for canceled flights.
During the COVID-19 pandemic insane travel chaos, airlines issued billions in travel credits and vouchers rather than cash refunds that were legally required. The DOT received over 100,000 complaints about airlines withholding legally mandated refunds.
It took DOT enforcement action and the threat of fines and penalties to get airlines to eventually pay up some of those outstanding refunds. But it’s estimated that billions were still never returned to passengers. Yeah… Billions with a “B!”
Will Airlines Actually Comply This Time?
So will this new rule finally force airlines to issue quick and easy cash refunds when they cancel or massively delay or reroute your flight? Or will they continue their usual shenanigans of obfuscation and avoidance?
Here are a few potential tactics airlines might try:
- Claiming delays/reroutings don’t qualify as “significant schedule changes” to avoid refunds
- Purposely making it difficult to request and obtain refunds through their websites/call centers
- Offering travel credits/vouchers first and burying the full cash refund option
- Just straight up violating the rule and refusing refunds until facing investigations/fines
The airlines have teams of lawyers and finance people dedicated to finding any loophole or gray area to avoid giving your money back. Don’t expect them to happily comply without putting up a fight.
What You Can Do
If an airline tries to deny you a legally required cash refund under this new rule, here’s what you can do:
- Firmly tell the airline agent you are entitled to a full CASH refund per DOT regulations
- Request to speak to a supervisor or manager if the agent refuses
- File a complaint with the DOT aviation consumer protection division
- Dispute the charge on your credit card as a legal violation
- Be prepared to take the airline to small claims court if necessary
The airlines will look for any excuse not to pay you back your money on canceled flights. Be vigilant, know your rights, and don’t let them take advantage of you or ignore federal regulations. It’s your money and you worked hard for it! Keep those horns up, friends! \m/ \m/