New airline refund policy explained

New federal regulations took effect this week that require airlines to make it easier for ticketed passengers to get their money back after cancellations or other significant flight changes.
Ahead of the peak holiday season, when millions of Americans are expected to take to the skies, travel expert Katy Nastro shared her top takeaways from the new Department of Transportation rules that people should keep in mind.
“Flight disruptions are stressful. The only other thing on par with that level of travel stress might be navigating refunds when you choose not to get rebooked by the airline,” Nastro told “Good Morning America.” “As we head into one of the busiest times of the year, the new DOT regulations are like a gift come early for travelers. Hassle-free and timely seven-business-day refunds back to your method of payment are a far cry from the weeks, sometimes months, we’ve seen people wait in the past.”
Nastro, a regular globetrotter and spokesperson for Going Travel App, shared the top takeaways of the new policy below.
Streamlined refunds: Travelers can now easily receive automatic refunds if they opt not to take a rebooked flight due to significant disruptions, making the refund process much more hassle-free than before. However, this doesn’t mean travelers can get both a refund and a new flight, the regulation only covers one or the other.
Clear disruption definitions: Significant disruptions are now clearly defined across airlines — three hours or more for domestic flights and six hours or more for international flights. Previously, when it came to how much time constituted a significant delay, time windows varied across most airlines. Some considered 90 minutes to be significant, while others considered four hours or more significant.
Baggage delay refunds: If a bag is delayed for over 12 hours (or 15-30 hours for international flights), travelers are eligible for refunds on their bag fees. Before this new ruling, when an airline misplaced a bag, it was up to the airline whether or not they would provide reimbursement for the bag fee paid.
Refunds for unfulfilled ancillary services: If airlines don’t deliver on ancillary services (like Wi-Fi or lounge access), travelers now have the right to request refunds for those services.
24/7 customer service: Airlines are now required to provide live customer service communication channels around the clock, whether through live chat or phone support.
“What’s interesting is that the standard times for what constitutes a significant delay have actually increased for most airlines,” Nastro pointed out, noting, for example, that Delta previously had 90 minutes as the threshold.
She added, “The two airlines that are trying to take things an extra step further are American Airlines and Alaska. American will keep four-plus hours as their international [refund] threshold for significant delays, while Alaska said it will use one hour or more as the refund threshold for domestic — controllable — delays.”
Nastro shared some additional tidbits that she said consumers should be aware of when considering how the new policy works.
“While most of the new rules are positive news for travelers, a few nuances still occur,” she said. “For example, if you often flew with Delta, United or Jetblue, the new three-plus hour [refund] threshold for significant delays is actually longer than the policy those airlines had in place previously, making that window even wider.”
“Additionally, there may not be some continuity with airlines in how long within that seven-business-day window you [will need to wait before you] see a refund back via credit card or how they are going to address refunds for downgrades,” Nastro pointed out. “Does going from extra-legroom to regular legroom count? Some airlines might argue yes, while others do not. The best advice is to check the new rules, but understand there might still be some differences to navigate.”