US Airlines Required to Give Automatic Refunds for Canceled, Delayed Flights

“Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers,” the secretary said when first announcing the rule.
Airlines must now automatically process a refund if a flight is “canceled or significantly changed, and [passengers] do not accept the significantly changed flight, rebooking on an alternative flight, or alternative compensation.”
The rule defines a significant delay as more than three hours for a domestic trip and six hours for international. The time limits apply to both scheduled departures and arrivals.
A “significantly changed” flight is one that departs from or arrives at a different airport than originally scheduled, one with an increased number of connections, one where a passenger is downgraded a service level (e.g. business to economy), or one that switches to airports or plane models that are less accessible for a person with a disability.
The refund must be processed within seven days if the ticket was bought with a credit card and within 20 days if paid for by another method.
The rule also requires refunds for delayed or missing checked baggage and pre-paid inflight services, like Wi-Fi or seating, that become unavailable.