New US DOT rules mandate cash refunds for airline passengers experiencing significant flight delays or cancellations, potentially totaling $5 billion in refunds nationwide, with Nashville International Airport alone accounting for $48 million in potential refunds according to Upgraded Points.
According to AOL., new rules from the U.S. Department of Transportation mean airlines must give passengers cash refunds if their flights are significantly delayed or canceled. Starting October 28, passengers will no longer receive vouchers or credits but cash refunds. A study by Upgraded Points shows that if these rules were in place last year, airlines would have owed $5 billion in refunds, with Nashville International Airport alone accounting for $48 million.
Nashville International Airport had a good record for on-time flights, with only 2.5% of flights canceled or significantly delayed last year. If the new US DOT rules had been in effect, the average refund for Nashville passengers would have been $493. The rules define a significant change as a domestic flight delayed more than three hours or an international flight delayed more than six hours, among other conditions.
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Billion-Dollar Shift: US DOT Introduces Cash Refund Policy for Flight Disruptions – Boosting Passenger Compensation! (PHOTO: Airline Weekly – Skift)
Airlines Challenge New US DOT Fee Disclosure Rules Amid Cash Refund Mandate
Airlines like American Airlines, Delta, and JetBlue have sued to block new rules requiring clear fee disclosures. However, the new regulations will ensure passengers automatically get refunds without needing to request them. Refunds will be issued in the same way the ticket was purchased, within seven days for credit cards and 20 days for other payment methods.
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