Travelers at O’Hare pleased to hear about new automatic refund rule for canceled flights

CHICAGO (CBS) — An automatic refund for a canceled flight—it seems like a no-brainer, but the new rule from the U.S. Department of Transportation just took effect this week.

This news comes right on time for air travelers—as many start to plan and book their holiday travel.

Some travelers just found out about these new rules in place to benefit them as they made their way into Chicago’s O’Hare International Airport for an evening flight Tuesday.

“I’ve been traveling internationally and domestically for probably about two decades now, and I think that it’s well overdue,” said Jesse Moore.

Moore was unaware of the Department of Transportation’s new airline refund rule. If a domestic flight is canceled or delayed by more than three hours, or if an international flight is canceled or delayed by more than six hours, travelers are entitled to a refund.

The refund for credit cards is within seven days.

“I think that getting the money back is good for customer confidence, to be reassured that, you know, their travel and their time means something,” Moore said.

CBS News Travel Editor Peter Greenberg explained how a passenger becomes eligible for a refund.

“So if the airline is delayed because of mechanical, you’re entitled to compensation. If the airline is delayed because they are missing a crewmember, you’re entitled to compensation. If the airline is delayed because the flight’s not there, you’re entitled to compensation,” Greenberg said.

Delays and cancellation caused by weather will not get travelers refunds.

“The biggest problem, of course, will be a definition of terms as to what constitutes weather,” Greenberg said.

Moore said she has experienced a cancellation before on a flight caused by weather out of her control. Since it was not the airline’s fault, she did not get a refund.

But Moore believes the new rule is a step in the right direction for airlines and passengers to keep the costly skies friendly.

“There needs to be some kind of steady ethic that is sustainable not only for the customers, but for the corporation as well,” Moore said.

The new rule also requires passengers to be refunded for in-flight services they paid for—such as seat, entertainment, or wi-fi—if they are not functioning properly.