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Airlines in the United States will now be forced to give cash refunds to passengers whose flights have been significantly delayed or cancelled, even if the customers haven’t made a request for a refund themselves.

The rule mandates refunds — not vouchers — for affected passengers.

This new federal rule, issued by the Department of Transportation (DOT), took effect on Monday in the United States, and will apply to any airline operating flights into or out of the USA.

The announcement comes into force just days ahead of a busy holiday travel season.

“Today, our automatic refund rule goes into full effect,” Transportation Secretary Pete Buttigieg said on X.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling.”

According to NZ Herald, Air New Zealand – one of the airlines affected – has told travel agents the rule covers “all flights to and from the US, regardless of where the passenger is scheduled to commence their journey or where the ticket is purchased.”

The new rule also applies to flights that transit the USA en route to places such as Europe or Canada.

Qantas has been contacted for comment about how this change may affect its bookings and operations in the United States.