Malaysia implements refunds for long flight delays

From Monday, Malaysia will implement a new rule that requires airlines to refund passengers if their flight is delayed by five hours or more. The regulation, effective from September 9, 2025, aims to protect the rights of air travellers and is in line with similar policies in other countries that focus on improving customer service in the aviation industry.

Mandatory refunds for delays of more than five hours

From September 9, 2025, all airlines operating in Malaysia must refund passengers if their flight is delayed by five hours or more. Passengers who do not want to take a delayed flight and book another option instead can also claim a refund under the new rule. These changes are part of a broader effort to protect consumer rights amid rising complaints about flight disruptions and poor airline practices.

Global Efforts for Better Airline Service Standards

Transportation regulators around the world are tightening rules to hold airlines accountable for service quality. For example, Qantas Airways Ltd. in Australia faced a lawsuit for allegedly selling tickets for flights that had already been canceled. Similarly, the U.S. Department of Transportation recently required airlines to provide automatic refunds for canceled or significantly delayed flights, as complaints about refunds being denied have increased. Malaysia Airlines, the country's national carrier, has been hit particularly hard by these new rules due to ongoing engine problems with its Airbus SE A330 aircraft. The airline plans to cut its flight routes by December and will issue refunds via the original payment method under the new rules. Australia's Efforts for Better Consumer Protection Australia is also working on new measures to improve competition and strengthen passenger rights, including making the refund process easier. However, not everyone in the airline industry agrees with these changes. Qantas CEO Vanessa Hudson expressed concern that mandatory refunds for delays and cancellations could lead to higher ticket prices as airlines try to cover these additional costs. The Malaysian Transport Ministry has said that airlines not complying with these new rules could be fined up to 200,000 ringgit (about $46,000), with higher fines for repeated violations.

 These moves are part of a global trend towards better consumer protection in air travel, aimed at improving the passenger experience and ensuring that airlines are held accountable for delays and cancellations.