Airlines in the United States are now required to give passengers cash refunds if their flight is significantly delayed or canceled, even if that person does not explicitly ask for a refund.
The Department of Transportation says the final federal rule requiring that airlines dole out refunds - not vouchers - went into effect Monday. The major change is being implemented only a month before the start of what is likely to be a huge holiday travel season.
Transportation Secretary Pete Buttigieg made the announcement on X after he first presented the proposed rule back in April. “Today, our automatic refund rule goes into full effect,” Buttigieg posted. “Passengers deserve to get their money back when an airline owes them-without headaches or haggling.”
A flight today is more than the flight I paid for 3 months ago. But a step in the right direction I guess.
Had an international flight canceled, for two people it was $3200 originally. To replace the same flight last minute to costed $3700 per ticket. The airline canceled one leg used by a “secondary” company that they owned. American Airlines and American Eagle
They charge at current rate, why don’t they refund at it?
I guess the “current rate” for a canceled flight ticket would be $0…
I think @[email protected] is essentially referring to the cost of a replacement flight purchase the same day. The obvious answer is that action isn’t required by law and would be massively more expensive for airlines. Rates for regular fares would have to skyrocket to cover the costs, which would create a vicious circle.
Why is that exactly? Does the airline face additional expenses when you book a flight the same day versus a month in advance?
The opposite. They can lose money when you book far in advance. They need the expensive close bookings (usually business travelers) to make the most of their money. So if the airlines are force to give away expensive profitable seats (expensive because they are in high demand), they’ll have to raise the rates on other earlier bookings to make up the difference.
I’m not sure how the law will pan out because of this. While it is beneficial, and airlines are financially held accountable, being reimbursed the price you paid for your ticket will not be enough to get you on the next available flight to wherever you were going. Depending on when the flight is canceled.
You’re correct, but I don’t think that is what the law was trying to fix. I think it was trying to fix paying for a flight in cash, and when a flight is canceled being given a voucher (often for less) locking you into purchasing from that airline again to get any value out of your original cash.
At least with this step if you pay $200 for your flight initially, and your flight is canceled, you’re given your $200 back to by a replacement which may, that day, cost you $600, so its only costing you $400 cash instead of $600 cash which would have been the situation before. This is a step in the right direction.