On Friday (July 19), a global IT failure caused a massive grounding of flights worldwide, sparking a debate on whether airlines should issue refunds or compensation to passengers.
This global technical glitch left tens of thousands of passengers around the world experiencing flight cancellations or delays. The question of whether affected passengers will be eligible for economic compensation is one that many travelers are now pondering.
According to regulations from the U.S. Department of Transportation, if a flight is canceled, regardless of the reason, airlines are required to refund the ticket fare to passengers who opt not to take an alternative flight. This applies even to non-refundable tickets.
The U.S. Department of Transportation also states that if there is a “significant” change or delay in a flight schedule and a passenger chooses not to take the airline’s flight, they are entitled to a refund.
However, the Department has not provided a clear definition of what constitutes a “significant” change. The decision is said to be based on factors such as the duration of the delay, length of the flight, and special circumstances.
In late April, the Department announced a new regulation that mandates airlines to increase transparency in charging additional fees and automatically refund cash to passengers in case of flight cancellations or severe delays, rather than offering vouchers or travel points.
Under this new rule, airlines can determine the length of delay that triggers a refund process, but it defines the standard for such “significant” changes or delays that initiate the refund procedure. For domestic flights, a delay exceeding 3 hours and for international flights, a delay exceeding 6 hours will trigger the cash refund process.
However, since the new regulations will not take effect until October, they are of no help to passengers affected by this IT failure. These passengers may have to work with airlines to seek refunds.
For passengers who booked through third-party booking websites rather than directly from the airlines, the process could be more challenging as they may have to negotiate with intermediaries to address refund or compensation issues.
Furthermore, a key factor in determining whether passengers are entitled to economic compensation is whether the factors leading to flight cancellations or delays are within the control of the airline. Experts also have differing opinions on whether the IT failure that grounded flights on Friday was within the airline’s control.
In terms of specific refunds, in addition to ticket fares, they may include other expenses faced by passengers due to flight cancellations or delays, such as meal costs and hotel accommodation expenses.