Travelers at O’Hare are happy with the new automatic refund rule for canceled flights

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

This news comes just in time for air travelers as many begin planning and booking their holiday travel.

Some travelers just discovered these new rules are in effect while heading to Chicago’s O’Hare International Airport for an evening flight on Tuesday.

“I’ve been traveling internationally and domestically for about 20 years now, and I think it’s long overdue,” Jesse Moore said.

Moore was unaware of the Department of Transportation’s new reimbursement rule for airlines. 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.

Refunds for credit cards will be made within seven days.

“I think getting the money back is good for the customer’s 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 qualifies for a refund.

“So if the airline is delayed because of mechanical problems, you are entitled to compensation. If the airline is delayed because they are missing a crew member, you are entitled to compensation. If the airline is delayed because the flight is not there, then you are entitled on compensation.” We are entitled to compensation,” Greenberg said.

Travelers will not receive a refund for delays and cancellations caused by weather conditions.

“The biggest problem, of course, is going to be defining terms about what weather is,” Greenberg said.

Moore said she has previously experienced a cancellation on a flight caused by weather conditions beyond her control. Since it was not the airline’s fault, she was not given a refund.

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

“There has to be some kind of stable ethics that is sustainable not only for the customers, but also for the company,” 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 do not function properly.