New Rule: Automatic Refunds for Canceled or Delayed Flights in Iowa

We're in the midst of a very busy travel season. Summer and travel go together. But sadly, so do delays and cancellations when it comes to airlines. Luckily, travelers finding themselves stuck because their flight has been delayed or canceled have some relief: faster, easier refunds.

The U.S. Department of Transportation's new law

Back in April, the U.S. Department of Transportation announced a new rule, set to start next week, that will help customers who face a delayed or canceled flight receive a timely refund.

Starting on Tuesday, June 25, the U.S. Department of Transportation will begin to require all U.S. airlines to issue customers full refunds if there are serious issues like serious flight delays, a cancelation, or even major baggage delay issues (refund would be for the cost of checking the bag, not the entire flight).

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Regarding bags showing up late, the DOT is giving airlines 12 hours to get your bags to you if you're traveling within the U.S., and 15-30 hours for an international flight.

Also changing, starting July 1, airlines have to be much more transparent with their fees. They will be required by the DOT to disclose all fees up-front as opposed to during checkout.

Will these new rules help passengers arrive on time more often? It's hard to know, but it is nice to have more protection. Should there be a need for a refund, under the new DOT rules, customers are to be reimbursed in cash, or through the customer's original form of payment.

Time will tell if this will help, but it's a nice start and additional peace of mind for travelers who have often felt like they're at the mercy of the airlines.

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