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Airlines required to refund passengers for canceled, delayed flights

Transportation Secretary Pete Buttigieg announced the new rules Wednesday.

ABC News

Good news for airline travelers: the Department of Transportation on Wednesday announced it is rolling out new rules that will require airlines to automatically give cash refunds to passengers for canceled and significantly delayed flights. "This is a big day for America's flying public," said Transportation Secretary Pete Buttigieg at a Wednesday morning news conference. Buttigieg said the new rules -- which require prompt refunds -- are the biggest expansion of passenger rights in the department's history. Airlines can no longer decide how long a delay must be before a refund is issued. Under the new DOT rules, the delays covered would be more than three hours for domestic flights and more than six hours for international flights, the agency said. This includes tickets purchased directly from airlines, travel agents and third-party sites such as Expedia and Travelocity. The DOT rules lay out that passengers will be "entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered." DOT will also require airlines to give cash refunds if your bags are lost and not delivered within 12 hours. The refunds must be issued within seven days, according to the new DOT rules, and must be in cash unless the passenger chooses another form of compensation. Airlines can no longer issue refunds in forms of vouchers or credits when consumers are entitled to receive cash. Airlines will have six months to comply with the new rules.

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