Transportation
Airlines Must Now Pay Automatic Refunds for Canceled Flights
- US DOT releases final rules to boost consumer protections
- Refunds also mandated if ‘significant changes’ made to flights
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Airlines will now have to provide automatic refunds to travelers if flights are canceled or significantly altered under new US Department of Transportation rules, a significant change for consumers that could drive up costs across the industry.
The final regulations released Wednesday outline the circumstances where passengers are entitled to refunds for all travel to, from and within the US. The goal is to make it easier for people to get money back and to make refund policies more consistent from one airline to the next.