You are now entitled to compensation if your flight is delayed or canceled
New rules require airlines to issue automatic refunds
Between the busy holiday season and the start of wintery weather, odds are that travel headaches are just around the corner. But there is now good news for travelers who run into flight delays or flat-out cancellations: You may stand a better chance of actually getting something in return for all your trouble.
As of Oct. 28, "U.S. travelers are officially entitled to compensation from airlines for canceled or significantly delayed flights, per three new rules from the U.S. Department of Transportation," said The Points Guy. One of the highlights of these rules is that you are "guaranteed to get your money back when an airline doesn't transport you from point A to B as promised, without having to file any paperwork," said CBS MoneyWatch.
Here is a closer look at what is changing under the new rules, and how — fingers crossed — they will make any upcoming travel snafus you run into feel a bit less painful.
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Can you get anything if your flight is delayed or canceled?
Put simply, yes. "Previously, the Department of Transportation (DOT) specified that airlines in the U.S. were not required to compensate passengers if a flight was delayed or canceled — companies were only required to provide compensation if you were moved or bumped from an overbooked flight," said MarketWatch Guides. But since the rule change, "airlines must promptly provide passengers with cash refunds if owed."
Cash refunds are owed if there is a cancellation or if a flight is "significantly changed," which includes the following situations:
- A departure or arrival time that is more than three hours from the original time for domestic flights, or more than six hours from the original time for international flights
- A change to the departure or arrival airport
- An increase in the number of flight connections
- A downgrade to a lower class of service
- A connection that is at a less accessible airport or flights on a less accessible plane for an individual with a disability
Additionally, said The Points Guy, "travelers will be eligible for a checked bag fee refund if their luggage is not delivered within 12 hours of a domestic flight arriving at their gate or within 15 to 30 hours for international arrivals." If you experience "disrupted inflight services, such as Wi-Fi, seat selection or entertainment," you are "now also entitled to a refund."
Refunds must be given promptly, meaning "within seven days for credit card purchases and within 20 days for other payments," said The New York Times. Refunds must be provided "in the original form of payment, whether by cash, credit card or airline miles."
What steps should you take if your flight is canceled or delayed?
If you are unlucky enough to experience a flight delay or cancellation, you should not have to do much to rectify things. While previously, you may have needed to reach out to the airline or fill out paperwork, the new rules stipulate that refunds are automatic.
That said, there are a couple of caveats. For one, said The Points Guy, "the rules do not apply to travelers who accept the airline's offer to rebook them on a later flight when their original itinerary is canceled or significantly delayed." Second, while passengers are now entitled to a refund for significant baggage delays, they must "first file a mishandled baggage report with an airline" to get it, said CBS MoneyWatch.
Also note that while the new rules technically took effect in late October of this year, "airlines will have six months to comply with the new rules," said ABC News — so there may be some delays in implementation.
Is there anything you can do to avoid delays or cancellations?
While the upcoming rule changes (and an awareness of your rights) can make the situation of a delayed or canceled flight easier to navigate, you may wonder if there is any way you can avoid the headache in the first place.
Of course, some factors will always be out of your control (and the airline's, for that matter), but there are still some precautions you can take:
Consider a credit card that offers some protections. "Several travel-related credit cards provide trip delay insurance that covers just these types of delays," said NerdWallet.
Take out a travel insurance policy. "Consider purchasing travel insurance with flight coverages — even a cheap travel policy can help protect your investment," said U.S. News & World Report. Depending on the policy, you may get covered if you face delays due to "bad weather, airline maintenance or personal medical issues," said NerdWallet, and "some travel insurance policies will even let you cancel a trip for any reason."
Book strategically. Believe it or not, "certain booking strategies" may "increase the odds of on-time arrival," said NerdWallet. Some strategies to consider: "fly earlier in the day," "avoid layovers if your budget and route allow," and "book with airlines with strong histories of on-time arrivals." Delta Air Lines, Hawaiian Airlines, American Airlines and United Airlines rank highest in the latter regard, said the outlet, citing data from the U.S. Bureau of Transportation Statistics.
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Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.
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