Flight delayed or canceled? Here's how you can get a full refund under MAJOR airline shake-up

Airlines will be forced to offer cash refunds for delayed or cancelled flights without customers having to ask, under major new rules being finalized by the Biden administration. 

The new plans, which have been nearly three years in the works, will require airlines to provide automatic refunds within a few days of a flight being cancelled or a 'significant' delay. 

In a major change for consumers, the regulations will classify a 'significant' delay as lasting at least three hours for domestic flights and six hours for international routes.

Under current rules, airlines can set their own standards for what kind of flight change warrants a refund - giving them much more wiggle room.   

The changes aim to cut out the often-long and frustrating process customers are forced to go through to get a refund, which can involve waiting hours on the phone or filing out 'cumbersome' digital paperwork.

The new rules, which have been nearly three years in the works, will require airlines to provide automatic refunds within a few days of a flight being cancelled or a 'significant' delay

The regulations, which are being finalized by the US Transportation Department, will also require airlines and ticket agents to disclose any extra fees alongside the full fare when they are buying tickets online.

The department said consumers will save as much as $543 million annually if they are made aware of excess airline fees, which include baggage costs and change and cancellation fees. 

The government will also require airlines to refund baggage fees if bags are not delivered within 12 hours of domestic flights arriving or 15 to 30 hours of the arrival of an international flight.

Refunds will also be mandated for extra onboard services, such as WIFI, seat selection, or inflight entertainment, if they are faulty or the airline fails to provide them.

Carriers will also be forced to tell passengers they have a guaranteed seat they are not required to pay extra for, although they will still able to charge for people to choose specific seats. 

Airlines and ticket agents are obliged to give money back within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.

They may not substitute a cash refund for vouchers or travel credits unless a passenger chooses a different kind of compensation.  

'Passengers deserve to get their money back when an airline owes them - without headaches or haggling,' said US Transportation Secretary Pete Buttigieg.  

'Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.'

'Passengers deserve to get their money back when an airline owes them - without headaches or haggling,' said US Transportation Secretary Pete Buttigieg

Airlines will also be required to refund baggage fees if bags are not delivered within 12 hours of domestic flights arriving or 15 to 30 hours of the arrival of an international flight

Airlines for America, a trade group representing major carriers, said airlines 'offer transparency and vast choice to consumers from first search to touchdown.

'US airlines are committed to providing the highest quality of service, which includes clarity regarding prices, fees and ticket terms.'

The group said the 11 largest US airlines issued $43 billion in customer refunds from 2020 through 2023, AP reported.

The new rules will take effect over the next two years, the Department said, as part of a broad administration crackdown on junk fees.

Last month, a US Senate Committee said it was stepping up its investigation into billions of dollars in yearly airline fees.

It noted that between 2018 and 2022, total revenue across major US airlines from baggage fees increased from $4.9 billion to $6.8 billion.

Major airlines have been under fire in recent months for increasing baggage fees, and making it more difficult to earn frequent flyer miles in a bid to boost profits.

Earlier this month, JetBlue introduced dynamic pricing for checked baggage fees - the first major US carrier to do so.