On Wednesday, the Biden administration announced new regulations that mandate airlines to issue cash refunds instead of vouchers under certain circumstances.

According to the Department of Transportation, airlines will now have to provide refunds in cases of flight cancellations or significant changes, considerable delays in checked baggage, or failure to deliver promised additional services.

The recently implemented guideline require airlines to provide a monetary reimbursement if a domestic flight is delayed by more than three hours or if an international flight is delayed by six hours.

Travelers will also be eligible for a reimbursement in the event that a carrier adds more layovers, demotes them to a class of service that is lower, or presents alternative connections at airports or flights on different aircraft that may not be as convenient or accommodating for individuals with disabilities.

According to regulations, airlines are required to provide a reimbursement for checked bag fees if the bag is not delivered within 12 hours for domestic flights or 15-30 hours for international flights, depending on the duration of the flight.

In the event that a customer has paid an additional fee for Wi-Fi or in-seat entertainment, they have the right to receive a refund if the service is not functional.

It is now required that the refunds are to be provided in their entirety and in a timely manner, automatically returning to the customer’s original payment method.

According to U.S. Transportation Secretary Pete Buttigieg, it is the right of passengers to receive their refunds from airlines without any difficulties or negotiations. The new regulation mandates that airlines must promptly issue cash refunds to their passengers, setting a higher standard for customer service.

It will take approximately 6-12 months for the implementation of the new regulations.