Airline’s New Rules: Full Refunds & No Hidden Fees
Airline vouchers bring many people memories of horror stories.
On Wednesday, the U.S. Department of Transportation announced new regulations to expand consumer protections, including ordering airlines to give full refunds instead of vouchers when flights are canceled or significantly delayed.
In the past, airlines issued vouchers as compensation for flight cancellations, overbookings, and significant delays. Airline vouchers typically come with a monetary value that can be applied toward future flight bookings. When passengers accept a flight voucher, they are essentially giving airlines an interest-free loan and locking themselves into a decision with significant downside.
For example, if you accept a flight voucher and your original flight gets canceled, you are no longer eligible for a refund. Airline vouchers also have a long list of terms and conditions, such as blackout dates, limited routes, or specific fare classes (which determine miles earned, available upgrades, and your boarding group).
The changes to the rules are expected to take effect 6 months from now.
Passengers will be eligible for full refunds when there are:
- Delayed flights (3+ hours domestic, 6+ hours international)
- Airport changes (departs from a different origination airport or arrives at a different destination airport)
- Added connections
- Service class downgrade
- Accessibility changes
The new rules also target junk fees. By forcing airlines to make these costs clear upfront, Americans are expected to save over $500 million per year on unexpected baggage, change, and cancellation fees.
Air travel just got a little less scary.
