Epic Fail: After The DOT Fails To Heed Warnings, Airlines Make It Much Harder To Qualify For Refunds

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Over 2 years ago, I wrote about the flaws in the Biden Administration’s DOT plans for automatic refunds when airlines make schedule changes or cancelations.

I also submitted a published comment on the proposed regulations and encouraged readers to do the same, which hundreds of DansDeals readers did.

My main concern was expressed in the beginning of the comment,

“The Department is to be commended for pushing back against airlines that refused refunds for significant schedule changes during the pandemic.

However, most US airlines currently offer refunds when they make a schedule change of 2 hours on both domestic and international flights. If the Department were to codify refunds based on 3 hour domestic changes and 6 hour international changes, it’s more than likely that airlines will use those rules, to the consumer’s detriment.

The Department should match the current 2 hour policy or if not possible just leave things as they are, with generic “significant schedule change” language.”

The DOT ignored the warnings and defined a significant delay or schedule change as 3 hours for domestic flights and a whopping 6 hours for international flights. Airlines making those changes are obligated to provide refunds or a 5 year voucher upon request, or automatic refunds within 7 days of the scheduled flight. Passengers can no longer leave a ticket open after the original scheduled departure date of a flight with significant changes, they will have to book another option or accept a refund or voucher.

Refunds are also owed if there are any changes in stops, origin or destination airport, downgrade in cabin, change to the operating carrier, or oddly enough, even a change of the flight number.

Airlines also have to provide refunds for bag fees if the bags aren’t provided within 12 hours for domestic flights or 15 hours for international flights.

And sure enough, thanks to this poorly conceived DOT rule, airlines are now making it much harder to get a refund.

For example:

• JetBlue allowed refunds for schedule changes of 2 hours or more on all flights booked before 10/28. They also allowed free changes with no fare difference and free changes to co-terminals (such as changing between JFK, LGA, EWR, HPN, or ISP)  for schedule changes over 60 minutes on all flights booked before 10/28.
  • Thanks to the new DOT rule, tickets booked as of 10/28 no longer qualify for free changes or refunds unless there is a 3 hour schedule change for domestic flights or 6 hour schedule change for international flights.
• Delta allowed refunds or free changes for schedule changes of 2 hours or more on all flights booked before 10/28.
  • Thanks to the new DOT rule, tickets booked as of 10/28 no longer qualify for free changes or refunds unless there is a 3 hour schedule change for domestic flights or 6 hour schedule change for international flights.
• United allowed refunds for schedule changes of 2 hours or more on all flights booked before 10/24.
  • Thanks to the new DOT rule, tickets booked as of 10/24 no longer qualify for free refunds unless there is a 3 hour schedule change for domestic flights or 6 hour schedule change for international flights. United is still offering free changes for scheduled changes of 30 minutes or more as they did prior to the DOT rule, but refunds have become far more strict.
• Southwest allowed refunds or free changes for any schedule changes on all flights booked before 10/28.
  • Thanks to the new DOT rule, tickets booked as of 10/28 no longer qualify for free changes or refunds unless there is a 3 hour schedule change for domestic flights or 6 hour schedule change for international flights.
• AA only allowed refunds for schedule changes that were 4 hours or more.
  • That has been reduced for domestic flights to 3 hours to match the DOT rule. The airline has not yet increased the requirement for international flights to 6 hours, so that remains at 4 hours for now.

This development can be called the law of unintended consequences, however it was sadly predictable. The DOT failed to listen to people who warned what would happen if it wasn’t fixed.

The DOT is becoming more active, but irresponsible regulations like this make me very nervous about other initiatives like the DOT investigation into mileage programs and passenger rights. The DOT has also been blocked for exceeding its authority. It’s not all bad, I do like the DOT’s family seating and have long taken advantage of DOT complaints to come to resolutions with airlines.

However, if regulations are not well thought out and changed as needed to incorporate suggestions from experts, it will certainly have negative side effects. The media may be fawning over the DOT’s latest refund rules, but the truth is that passengers were much better off without them.

Like and repost or quote repost on X:

Hey @PeteButtigieg as we warned would happen due to the wording of the new @USDOT refund rules, airlines like @Delta @JetBlue @united @SouthwestAir have all made it significantly harder to qualify for a refund or free change, with flight change requirements increasing from 1-2… pic.twitter.com/4G19mUuH7B

— DansDeals (@DansDeals) October 31, 2024

Epic Fail: After The @USDOT Fails To Heed Warnings, Airlines Make It Much Harder To Qualify For Refunds https://t.co/B12QpgOmyN

— DansDeals (@DansDeals) October 31, 2024

Be careful what you wish for, indeed.

HT: chff