Airlines must now give cash refunds for long delays and bag issues

Some new travel news to bring you as the Biden administration's new airline consumer protection rules went into effect today, requiring carriers to automatically issue cash refunds for things like delayed flights and to better disclose fees for baggage or canceling a reservation.

Under the new Transportation Department regulations, airlines must now provide automatic cash refunds within a few days for canceled flights and significant delays.

A significant delay is now officially defined as lasting at least three hours for domestic flights and six hours for international ones, removing the previous system where airlines could set their own thresholds.

While airlines can still offer another flight or travel credit, consumers now have the explicit right to reject these alternatives and receive cash refunds instead.

The rules also mandate refunds of checked-bag fees if bags aren't delivered within 12 hours for domestic flights or 15 to 30 hours for international flights. 

Additionally, airlines must refund fees for services like seat selection or internet connection if they fail to provide them.

These regulations were developed following a surge in refund complaints during the COVID-19 pandemic, when flight cancellations peaked and many passengers were hesitant to fly.

The Transportation Department estimates these new regulations will save consumers more than $500 million annually.

The complete implementation of these new rules will occur over the next two years.