Department of Transportation announces proposed change to airline refunds

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Airline ticket refund rule proposal overview: 

• Who: The Department of Transportation has proposed a new rule revolving around airline refunds for canceled or altered flights. 
• Why: The proposed rule would expand on the ability of airline passengers to receive refunds in the event of, among other things, a substantial flight delay or issue related to COVID-19.
• Where: The proposed rule would affect airlines and consumers nationwide.

The Department of Transportation has proposed a rule change that will grant airline passengers greater access to refunds in the event of unforeseen circumstances, including a substantial delay or COVID-19 event.

The agency says it is proposing the changes as a way to “significantly strengthen protections” for consumers who attempt to obtain a refund for airline tickets following an extenuating circumstance. 

“When Americans buy an airline ticket, they should get to their destination safely, reliably and affordably,” U.S. Transportation Secretary Pete Buttigieg says in a statement. “This new proposed rule would protect the rights of travelers and help ensure they get the timely refunds they deserve from the airlines.”

Under the proposed rule change, airline passengers will be able to seek a refund if their flight departure or arrival time is adjusted by three hours or more, if there is a change in the arrival or departure airport destination or if there is a change to the flight itinerary. 

Passengers able to try to obtain airline refunds under variety of circumstances

Airline passengers will also be able to try to obtain a refund if an airline changes the type of aircraft used for their flight in the event it “causes a significant downgrade in the air travel experience or amenities available onboard the flight.”

The proposed rule change would also require airlines and ticket agents to provide consumers with vouchers that will remain valid indefinitely for flights canceled due to reasons related to COVID-19.

COVID-19 events that could necessitate a canceled flight and subsequent voucher include a government mandated ban on travel, border closure or when a passenger is advised not to travel for either their health or the health of other travelers, the agency says.

The proposed rule, called the Airline Ticket Refund NPRM, would also require airlines that receive “significant government assistance related to a pandemic” to issue refunds instead of indefinitely valid travel vouchers or credits.

In related news, the 11th Circuit in February determined a federal law did not protect Venezuelan airline Avior Airlines from class action accusations that it violated the law by charging its passengers a surprise fee.

Have you been unable to obtain airline refunds while traveling? Let us know in the comments!

Read About More Class Action Lawsuits & Class Action Settlements:

• Northwestern University class action over COVID refunds to move forward
• FTC issues refund checks to victims of fraud, other scams
• Ocala, Florida, illegal fire service fees $79M common fund
• Sound Credit Union collateral protection insurance $750K class action settlement