U.S. Air Travel Refund Rules In Effect – Here Is What You May Be Entitled To

On October 28, 2024, the U.S. Department of Transportation (DOT) implemented three new rules regarding airline compensation for delayed, changed or canceled flights flying into, out of, and within the United States.

Announced in late April, the new rules set out to simplify the refund process regarding flights that may have been significantly changed or canceled entirely. In the April statement, U.S. Transportation Secretary Pete Buttigieg said:

“Passengers deserve to get their money back when an airline owes them – without headaches or haggling. Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

1) Canceled or significantly changed flights

Passengers will be entitled to a refund if their flight is either significantly changed or canceled. “Significantly changed” flights cover the following scenarios:

• Where the departure or arrival time differs by more than 3 hours domestically and 6 hours internationally
• Where the departure or arrival airports differ from the original itinerary
• Where there is an increase in the number of connections
• Where passengers are downgraded to a lower service class
• Where passengers with disabilities are forced to connect through a different airport or fly a different aircraft not listed on their original itinerary that are less accessible or accommodating

What is most interesting is that there aren’t any exceptions to the rule, meaning that an airline cannot use the excuse of weather or an aircraft suddenly becoming inoperable as a reason not to refund affected customers.

When it comes specifically to cancellations or delays, passengers opting to take a later flight will not be entitled to a refund.

Refunds are calculated based on the affected portions of the ticket. For instance, if the return leg of a passenger’s trip was affected by a delay or cancellation, they would only be entitled for a refund for that portion of the ticket.

2) Significantly delayed baggage return

Passengers who file a mishandled baggage report will be entitled to a full refund of their checked bag fee if the bag is not delivered to the customer within:

• 12 hours of their domestic flight arriving at the gate
• 15 – 30 hours of their international flight arriving at the gate depending on the length of the flight

3) Extra services not provided

Passengers will also be entitled to refunds for ancillary services if the airline is unable to provide them during their flight. This covers items such as Wi-Fi, seat selection and upgrades (e.g. booking seats with more legroom) and inflight entertainment.

Travelers with contagious illness entitled to travel credits or vouchers

If the government or a medical professional restricts passengers from flying into, out of, or within the United States as a result of them having a serious communicable disease, the airlines are required to provide these affected customers with transferable travel credits or vouchers valid up to five years from the date of issue.

Affected travelers must provide evidence of this when requesting their credits or vouchers.

Airline obligations

To improve the experience for the customer, airlines will also be required to automatically issue refunds in a timely manner. According to the rules, those paying via credit card should except to receive their refunds within seven business days. Customers paying through other means should expect refunds within 20 calendar days.

Customers also have the choice either a cash refund, or being compensated via the original payment method. Airlines will no longer be able to issue travel credits, vouchers or other alternative refund options as a form of compensation.

Finally, airlines are expected to refund the full calculated value, meaning they must also refund government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.

The rule also requires airlines to provide prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.

Even though this rule set has been effect more than a week, airlines may still have some catching up to do to properly implement new systems to deal with these new policies.