New US Flight Disruption Rules

Airlines

The New Rules

The US Department of Transportation rules introduce several long-waited protection changes for passengers to make sure their rights are respected. The rules will entitle air passengers to a refund if their flight is canceled or significantly delayed, and for several other reasons.

Passenger eligibility for a refund:

• Flight departs or arrives more than 3 hours domestically or 6 hours internationally.
• The change of arrival or departure airports occurred.
• Increase the number of connecting flights.
• Passenger’s class of services gets downgraded to a lower than originally purchased.
• Significantly delayed baggage return: affected passengers whose checked baggage is not delivered on time (within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate) have to file the report to become eligible to receive a refund of their checked baggage fee.
• Extra services not provided: passengers will be entitled to a refund for the fee they paid for extra services (ex. Wi-Fi, seat selection, or inflight entertainment).

Procedure for reimbursement:

• Airlines will be required to provide automatic cash refunds without passengers having to explicitly request them.
• Refunds will have to be issued promptly within seven business days for credit card purchases and 20 calendar days for other payment methods.
• Airlines and ticket distributors will have to provide refunds in cash or whatever original payment method the individual used to make the purchase.
• Airlines will not be allowed to pressure the traveler into accepting the airline’s favorable terms, such as replacement vouchers or travel credits. 

Events Leading to the New Regulation

The new rules were introduced following a series of events that highlighted the need for improved passenger rights. These include:

• The tumultuous travel season was awash with flight cancellations and delays, and further exacerbated by the 2022 winter holiday debacle on Southwest Airlines, in which almost 17,000 flights were canceled and over 2 million passengers were left stranded.
• The move from the Biden administration to explore the new requirements on airlines came after the airline industry and the federal government faced significant backlash for mass flight delays and cancellations that stranded passengers during the holiday season last year.
• Back in 2023 President Biden and Transportation Secretary Pete Buttigieg announced a proposed new federal rule that would require airlines to compensate passengers for “controllable” flight cancellations and delays.

These events underscored the need for more robust protections for air passengers, leading to the introduction of the new rules.

Global Implications

The newly introduced directive is closely related to guarantees already in place for air passengers in Canada and the European Union.

European Union

In the European Union, air passenger rights are already well-established since its adoption back in 2004. EU protects passengers against severe flight disruption. EU flight originating passengers are entitled to care and assistance in case of delays along with refunds for longer delays or cancellations.

Rest of the World

The International Air Transport Association (IATA) has been long campaigning for all governments to apply the same core principles on passenger rights. The new rules could potentially influence other countries to adopt similar regulations, leading to more uniformity in passenger rights worldwide.

While the new compensation rules may pose challenges for airlines (in cost and operations), they also offer opportunities for improved customer service and smooth travel experiences.