New Department of Transportation (DOT) rules now require airlines to provide automatic cash refunds for cancelled and significantly delayed flights, CBS News reported.
According to CBS News Baltimore, this is welcoming news for travellers at BWI Thurgood Marshall Airport where cancellations and delays are common.
People said that they would now feel more comfortable when booking flights because they know if anything happens, they can get their money back.
Beverly Banta, a BWI traveller who was visiting her family she has not seen in 12 years, said: "All these charges, they want to tack on, but yet they don't give you any refund if they lose your luggage or if your flight gets canceled."
As part of DOT's new rules, airlines must automatically give refunds to passengers for cancellations.
Additionally, the new rules state thatif passengers are delayed for more than three hours for a domestic flight, or more than six hours for an international flight, they can get a refund if they choose not to fly.
"We have heard it all and too often the things that we hear about aren't just irritating inconveniences," US Transportation Secretary Pete Buttigieg said. "They are significant harms, and more importantly, violations of passengers' rights."
Furthermore, travellers will receive refunds if their bags are lost and not delivered within 12 hours. Airlines must also refund travelers if services paid for, such as broken wifi, aren't provided.
"I think it's just better insurance for an everyday person," traveller Tanner Adams said.
"I love it," Banta said. "It's exciting. I think it's great."
The new rules are set to be introduced next year to reduce hidden airline fees, saving travellers over $500 million per year.
The rules states that airlines must also provide refunds in cash or original payment, and cannot offer travel vouchers or other compensation unless the passenger willingly accepts it.