New rules in the US mandating automatic refunds for airline passengers facing delays or cancellations have reignited discussions about consumer protections in Australia.
Travel insurance expert Natalie Ball and consumer advocate Adam Glezer are urging Australian carriers to improve their compensation policies in line with international standards.
Since Oct. 30, airlines in the US must provide automatic refunds to passengers for cancelled flights or significant delays. Refunds are required if international flights are delayed by more than six hours or domestic flights by more than three hours.
Additional provisions apply if passengers are downgraded to a lower cabin class or paid services, such as onboard Wi-Fi, are unavailable.
Airlines must also compensate for delays involving checked baggage.
Australian travellers flying with US airlines now have the benefit of these protections, removing the need to request refunds manually.
Comparetravelinsurance.com.au managing director Natalie Ball said that the move could encourage Australians to demand similar rights when flying domestically.
“This change will raise awareness among Australians about their consumer rights, especially when flying with international airlines. It also sets a precedent, as Australian travellers may begin to expect similar levels of transparency and fairness when flying domestically or with local carriers,” she said.
She pointed out that Australia’s airlines lag in addressing delays, particularly as nearly half of flights on key domestic routes were either cancelled or delayed last year.
Consumer advocate Adam Glezer echoed concerns, noting Australia’s protections are minimal compared to other jurisdictions.
“These are the type of laws that Australia should also have in place. The bottom line is, when it comes to airline protection for consumers, we’re well behind other areas of the world, such as the US and UK, in terms of compensation and the automatic right to refunds,” he said.
While US rules do not apply to Australian airlines, Ball suggested they might influence public expectations locally.
“Currently, Australian airlines are not necessarily obligated to account for the care of delayed passengers. By contrast, passengers in the EU are entitled to up to 600 euros when delayed for more than three hours. And those eligible for refunds must be compensated within seven days of a flight cancellation,” she said. “Now that US passengers are protected by stronger consumer laws, hopefully Australia will soon follow suit.”
Both Ball and Glezer emphasised the importance of travel insurance for events beyond an airline’s control, such as bad weather or industrial action.
“If your flight is delayed due to factors within the airline’s control, such as crew shortages or mechanical issues, airlines are responsible to support their customers,” Ball said, noting that coverage is critical for unforeseen expenses like accommodation and rebooked flights.
Glezer criticised instances where airlines attempt to offload refund responsibility onto insurers, even when the airline is at fault.
“When the cancellation is within the airline’s control, they should automatically refund consumers without telling them to go and get a refund from their insurance company. It’s the airline’s responsibility to refund customers in situations such as these,” he said.
