Passengers entitled to cash refunds and clearer rights under new Department of Transportation rules
- New Department of Transportation rules require airlines to automatically refund passengers for significant delays and cancellations
- Passengers entitled to cash refund for canceled or significantly changed flights, delayed checked bags, or failed extra services
- Airlines cannot substitute vouchers or alternative compensation without passenger consent
- Passengers entitled to cash refund for mishandled bags or failure to provide paid extras
- 10 major U.S. airlines guarantee free rebooking and meals for affected passengers
- Passengers in the U.S. still missing out on the right to care in case of disruptions
- Separate Transportation Department rule requires disclosure of airline fees upfront
- Tips for dealing with flight delays and cancellations
Flight delays and cancellations can be a major inconvenience for travelers, resulting in additional expenses and disrupted plans. However, new Department of Transportation rules set to take effect at the end of October aim to provide passengers with automatic refunds for significant delays and cancellations. These rules also clarify what counts as a "significant" change and give consumers clearer rights, reducing their reliance on airlines to determine compensation. Passengers will be entitled to cash refunds for canceled or significantly changed flights, delayed checked bags, and failed extra services. Airlines will not be able to substitute vouchers or alternative compensation without the passenger’s consent. Additionally, passengers will be eligible for cash refunds if their bags are mishandled or if paid extras, such as wifi or seat selection, are not provided. While the new rules do not require free meals or hotel accommodations, 10 major U.S. airlines have agreed to offer free rebooking and meals, with some also providing hotel accommodations for significant delays or cancellations. However, compared to other regions, such as the U.K. or E.U., passenger rights in the U.S. still have room for improvement. In 2023, airlines had a cancellation rate of 1.29% and mishandled 0.58% of bags. The new rules are part of the Biden administration’s efforts to protect consumers and have already returned over $3 billion to airline passengers. In addition to the new refund rules, a separate Transportation Department rule will require airlines and ticket agents to disclose upfront the fees they charge for checked and carry-on bags, as well as for canceling or changing a reservation. This transparency is expected to save consumers over $500 million annually in hidden airline fees. To navigate flight delays and cancellations, passengers are advised to check the Department of Transportation dashboards for information on rebooking, meal vouchers, hotels, and other refunds. It’s important to remember that passengers are entitled to cash refunds and do not have to accept vouchers or travel credits. Some credit cards also provide travel protection, and passengers can dispute charges with their credit card company or file a complaint with the DOT if the airline is uncooperative.
Factuality Level: 8
Factuality Justification: The article provides detailed information about new Department of Transportation rules regarding passenger rights, including when passengers are entitled to cash refunds, what counts as a significant change, and entitlements for mishandled bags. It also includes quotes from relevant sources and statistics to support the information presented.
Noise Level: 3
Noise Justification: The article provides relevant information about new Department of Transportation rules regarding passenger rights and compensation for flight delays and cancellations. It includes details on what passengers are entitled to, the impact on consumers and airlines, and suggestions for dealing with flight disruptions. The article stays on topic and supports its claims with examples and quotes from industry experts. However, there are some repetitive details and the article could be more concise.
Financial Relevance: Yes
Financial Markets Impacted: The article does not provide specific information about financial markets or companies impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses new Department of Transportation rules regarding flight delays and cancellations, which can have financial implications for both passengers and airlines. However, there is no mention of an extreme event or its impact.
Public Companies: Southwest Airlines (LUV), Alaska Airlines (ALK), Allegiant Travel Company (ALGT), American Airlines (AAL), Delta Air Lines (DAL), Frontier Airlines (ULCC), JetBlue Airways (JBLU), Spirit Airlines (SAVE), United Airlines (UAL)
Key People: Pete Buttigieg (Transportation Secretary), Tomasz Pawliszyn (CEO of AirHelp), Eric Napoli (Vice President of Legal Strategy at AirHelp)
Reported publicly:
www.marketwatch.com 
