The US Department of Transportation recently approved a final rule that mandates automatic refunds for passengers when flights are cancelled or face significant changes.
Airlines must automatically refund delayed and cancelled flights under these conditions
Under the new rule, airlines are required to provide refunds automatically if a flight to, from, or within the United States (US) is cancelled or undergoes a significant change and the airline does not offer a satisfactory alternative or if the passenger rejects the alternative offered.
This includes changes in the flight schedule that move the original timing by several hours, changes in the departure or arrival airports, or if the service class is downgraded.
Refunds must be issued within seven business days for purchases made by credit card and within 20 calendar days for other forms of payment.
Additionally, the regulation mandates that airlines refund fees for ancillary services — such as Wi-Fi access and advanced seat selection — that were not provided, as well as fees for checked baggage if the baggage is significantly delayed.
The US Department of Transportation has also established clear definitions for what constitutes a ‘significant change’ and a ‘cancellation.’ This is to eliminate inconsistencies and ensure all passengers understand their rights.
Will this impact air travel in South Africa?
While the rule is specific to the US, it sets a precedent that may influence airline policies globally, including in South Africa. South African airlines that operate flights to and from the US will need to comply with these new regulations.
This could lead to similar policies being considered by South African aviation authorities to maintain consistency and competitive parity in international air travel standards.
Furthermore, as global consumer expectations shift towards greater transparency and fairness, South African carriers may face pressure to adopt similar refund policies to meet these international standards, potentially leading to broader changes in the region’s air travel industry.