Travelers flying out of Dallas Fort Worth International Airport would have been owed approximately $267 million in refunds last year — the most of any U.S. airport — under forthcoming Department of Transportation rules, according to a study.
As part of a new set of rules from the DOT that begin to take effect in October, airlines will be required to provide refunds to travelers whose flights have been canceled or changed, as reported by The Dallas Express.
Upgraded Points, a company that provides strategies for maximizing travel points, miles, and rewards, published a study this week on which U.S. airlines are likely to be most impacted by the new rules. The study used 2023 airfare and flight data from the U.S. Bureau of Transportation Statistics.
It found that some 9,915 flights — equal to roughly 3.4% of flights out of DFW airport — would qualify for refunds, more than any other airport in the U.S. As DX has reported, DFW is one of the nation’s most delayed airports.
Dallas Love Field ranked No.2 among medium-sized hubs in the Upgraded Points study. Under the new rules, passengers traveling out of Love Field would have been refunded $36 million. Some 1,713 flights from Dallas Love Field were either canceled or delayed, equal to roughly 2.3% of flights out of the airport.
American Airlines ranked second, behind United ($1.3 billion), for the most owed in refunds at $1.27 billion, and Southwest came in fourth, with $498 million. Southwest experienced a major holiday disruption in December 2022, which cost the company over $1 billion, as previously reported by DX.
“Airlines may need to adjust operations and raise ticket prices to manage the increased cost of automatic refunds. However, these changes come at a time when significantly changed or canceled flights have declined below pre-pandemic levels, which may help airlines adapt to the new DOT rules with less economic disruption. Even so, data suggests major carriers could face billions in refunds, with even budget airlines feeling the burden,” reads the study.
In an April 24 news release about the new rules, U.S. Transportation Secretary Pete Buttigieg said, “Passengers deserve to get their money back when an airline owes them — without headaches or haggling. Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
The new rules issued by the DOT state that passengers will be eligible for refunds if departure and arrival times are delayed by three or more hours for domestic flights and six or more hours for international flights.
Passengers may also request a refund if they are downgraded to a lower class than the one they initially purchased or if any inconveniences arise due to a lack of disability accommodations. Additionally, changes made to the number of connections or changes made to the airport where the flight departs or lands qualify for refunds.