A recent study has revealed that Indiana airport goers may be in line to receive up to $22 million in refunds following the implementation of a new Department of Transportation (DOT) rule.
The rule, which aims to enhance consumer protection in the airline industry, could result in significant reimbursements for passengers affected by flight cancellations and delays. The automatic refund rule comes in the wake of increased flyer frustration and crowded flights that have led to more passenger complaints.
The new rule means refunds will be automatic, issued promptly and provided in cash or to the original payment method for the following conditions:
- Departure or arrival time difference of more than three hours for domestic flights or six hours for international flights.
- Scheduled arrival or departure from a different airport or destination.
- Adding connecting flights or connection points during a trip.
- Downgrading a passenger to lower class of service.
- A passenger with a disability receiving a substitute aircraft or flight that is unable to accommodate or provide specific disability features.
- A significant delay in receiving checked bags.
Previously, airlines had their own standards that varied widely and complicated the refund process. This new rule also no longer allows airlines to issue refunds in the form of travel vouchers or credits.
According to an official DOT statement, airlines were also found to apply less consumer-friendly policies during spikes in flight cancellations or changes. During the COVID-19 pandemic, refunds peaked at 87% of all air travel complaints to the DOT.
According to the U.S. Bureau of Transportation Statistics, $5 billion in automatic refunds could have been processed under the new rule in 2023. According to the data, major carriers like United, American and Delta could face billions of dollars in refunds due to cancellations or delays.
The rule also mandates airlines to provide prompt notifications to flyers experiencing cancellations or delays about their right to a refund. Additionally, airlines must provide vouchers or credits to travelers who are advised not to travel for medical reasons or restricted by a government to travel to or from the US.
While the study only serves as a preliminary cost estimate, the airlines are expected to adjust their operating standards or overall pricing to fund the costs. The study breaks down estimated costs by airline and airport, and Indiana ranks 13 in overall estimated refunds.
Indianapolis International Airport is considered a “medium hub” according to the DOT and is expected to provide nearly $22 million in estimated refunds under the new rule. That’s about $473 per flight and 1,207 flights annually. According to the study, 2.6% of annual flights at the airport will be eligible for refunds under the new rule.
The DOT also plans to expand their investigations into airline practices in the coming years. Recently, they have proposed new regulations banning family seating fees and initiatives to enhance the rights of wheelchair users on flights. Also, the DOT is undertaking its first industry-wide review of airline privacy practices and loyalty programs.
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The DOT mandated all airlines comply with the automatic refund rule prior to October 28, 2024. For more information about the refund rule, visit transporation.gov. To learn your rights as a passenger, visit flightrights.gov.
Contact Health & Environmental reporter Hanna Rauworth at 317-762-7854 or follow her on Instagram at @hanna.rauworth.
Hanna Rauworth is the Health & Environmental Reporter for the Indianapolis Recorder Newspaper, where she covers topics at the intersection of public health, environmental issues, and community impact. With a commitment to storytelling that informs and empowers, she strives to highlight the challenges and solutions shaping the well-being of Indianapolis residents.
