Getting your money back after an airline cancels your flight is now easier than ever—and, in most cases, passengers don’t even have to do anything to receive refunds.
New Department of Transportation rules that were issued in April 2024 are now in effect, with significant changes in how airlines must handle customer refunds for flight cancellations, delays, and other disruptions. The new regulations also set clear standards around what constitutes a delayed flight, as well as the time frame in which refunds must be provided (within 20 days).
All of which represents a major victory for air travelers.
“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” Transportation Secretary Pete Buttigieg said when the rules were first issued in April. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Here’s what else to know about the new rules, which went into effect on October 28, 2024.
Who gets automatic refunds?
All customers are now entitled to automatic refunds of their original payment when an airline cancels a flight for any reason. This should pave the way for a much more straightforward and transparent refund process in the United States. (In Europe, a consumer protection law known as “Regulation EC 261-2004,” which has been in place since 2004, entitles passengers up to €600 for flight disruptions.)
U.S. airlines were required to offer refunds for flight cancellations “long before” the new rules went into effect, according to Teresa Murray, Consumer Watchdog director at U.S. PIRG, a consumer advocacy nonprofit. But airlines have been notorious for complicating that process by pushing customers to accept a voucher or flight credit (usually valid only for a year from the issue date) or forcing passengers who instead demanded a payment refund to call the customer service line or fill out an online form.
“Airlines were allowed to do and often did two things: one, push vouchers [and] credits, and two, slow-walk the refunds for anyone who insisted on a refund,” Murray told Afar.
Now, passengers will get a refund of their original payment if they choose not to accept any automatic rebooking of the canceled (or significantly delayed) flight. Refunds must be made in full via credit card or cash (whichever form of original payment the passenger used), less the cost of any flight segments already flown.
A clear new definition for flight delays and changes
Any “significant change” now entitles passengers to a refund—and, for the first time, there’s a set standard for what that means. A significant change is defined by the DOT as:
- A change in departure or arrival time of more than three hours for domestic flights and six hours for international flights
- A change of either arrival or departure airport
- An additional connection in the itinerary that wasn’t indicated previously
- A downgrade in the class of service previously booked and paid for
Additionally, passengers with a disability can get a refund if an airline changes a flight to include a different airport or aircraft that is less accessible.
Some airlines already had their own rules for what constituted a significant schedule change that would entitle a customer to a refund—now all U.S. airlines must at least abide by the minimum number of hours as defined by the DOT, in addition to the other stipulations.
As with cancellations, passengers experiencing changes and delays must decline the airline’s offer of alternatives to be eligible for the automatic refund.
Airlines must also provide automatic refunds for the purchase of add-on services like seat selection or Wi-Fi if passengers do not receive those (for example, if there’s an aircraft switch and a passenger’s original purchased seat selection is unavailable).
Delayed baggage also is covered
Airlines must also refund bag fees if they don’t deliver customers’ checked luggage within a certain time from the flight’s arrival.
If an airline does not return a bag to a customer within 12 hours of when a domestic flight arrives or 15–30 hours (depending on the length of the flight) of when an international flight arrives, customers are entitled to a refund of the bag fee.
Unlike the other provisions, that refund is not automatic. Passengers must file a mishandled baggagge report with the airline to receive this refund. However, they should do that anyway to let the airline know their bag did not appear at baggage claim as it should have.
Prompt payment for refunds now required
Up to this point, being approved for a refund from an airline was only one part of the process: next came the waiting and wondering if you’d ever get your money back.
Now, there are strict requirements for when an airline must process and send refunds to customers: 7 business days for credit card payments, and 20 business days for other methods of payment. Previously, that time frame could stretch into weeks or even months.
Reasons for an automatic refund
In many cases, customers won’t have to do much to receive refunds. A refund is required to be automatically issued if:
- An airline cancels your flight and does not offer an alternative, travel credits, or vouchers
- An airline significantly changes your flight, you reject the change, and the airline does not offer an alternative or travel credits or vouchers
- You reject a significantly changed flight or alternative transportation as well as any travel credits or vouchers that an airline offers for a canceled or significantly changed flight
- You don’t respond by a certain time frame set by the airline to an offer of alternative transportation instead of a refund for a significantly changed or canceled flight, and the airline has a policy to treat that as a rejection
- You don’t respond by a certain time frame set by the airline to an offer of travel credit or vouchers instead of a refund for a significantly changed or canceled flight
- You don’t respond to an airline’s offer of alternative transportation or travel credits or vouchers instead of a refund and the airline has not set a time frame and you don’t take the flight
Airlines’ policies and circumstances will likely affect what kind of alternative or compensation is offered before a refund is automatically processed. Even so, in the vast majority of cases, the new requirements should greatly simplify and speed up the process.
More passenger rights coming in 2025
If a passenger cannot fly because they are restricted by a government or advised against it by a medical professional due to a “serious communicable disease,” they will be entitled to a transferable voucher valid for five years from the date of issue.
This represents another win for passengers, since airline vouchers have traditionally been nontransferable and only valid for a year. This particular rule will go into effect in April 2025.
Finally, airlines are now required to let passengers know they are entitled to a refund for a cancellation or significant change. If the airline does not do this and its customer service isn’t helpful, you can file a complaint with the DOT.
According to an agency press release, “refund problems continue to make up a substantial share” of the complaints it receives—although this new batch of rules is poised to help on that front.
