Airlines across the United States must now automatically offer cash refunds to passengers over significantly delayed and canceled flights.
Department of Transportation rules came into force on Monday requiring airlines give customers their money back for “canceled or significantly changed” flights, rather than the likes of vouchers.
“Passengers deserve to get their money back when an airline owes them without headaches or haggling,” transport secretary Pete Buttigieg said in a social media post.
He had proposed the rule in April, which will mean passengers are automatically refunded through their original payment method if they do not accept the likes of alternative compensation or rebooking onto other flights.
This will also cover refunds for checked baggage if mishandled and paid-for ancillary services where airlines do not provide services as advertised.
“Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund,” the Department of Transportation added.