New Rules Require Automatic Cash Refunds For Delayed, Canceled Flights

The Biden administration has announced rules that will require airlines to issue automatic cash refunds for any domestic flight that is canceled or delayed more than three hours, regardless of reason, including weather. Passengers can waive the refund and get rebooked on another flight if they choose. The new rules also include cash compensation for delayed and lost luggage. "No more defaulting to vouchers or credits," Secretary of Transportation Pete Buttigieg said while announcing the new measures at Reagan National Airport.

Although the status quo will remain through the busy summer travel season, they will be in force for Thanksgiving. The six-month delay will allow the airlines to adjust their accounting systems to implement the changes. Airlines have not yet responded formally to the news, but social media comments note that up to half of airline delays are attributed to ATC delays. There are also predictions the move will drive up ticket prices.