New Airline Refund Rule: What Every Traveler Needs To Know

October 31, 2024

Travelers now have better protection and a quicker path to refunds when flights don't go as planned, thanks to a new rule from the U.S. Department of Transportation (DOT).

airlines must refund cancelled flights

If a flight is canceled or delayed by more than three hours domestically or six hours internationally, airlines are now required to refund passengers automatically—no more waiting for travelers to request their money back.

Transportation Secretary Pete Buttigieg emphasized that the new rule aims to ensure passengers get their refunds without hassle. It builds on previous policies, setting a higher standard for airlines to issue refunds quickly, typically within seven days for credit card purchases and 20 days for other payments. The rule also specifies that refunds must be sent directly to the original payment method, covering the entire unused portion of the ticket.

Under this rule, significant delays are now clearly defined, making it easier for travelers to know when they’re eligible for a refund. Additionally, if there are changes to a flight’s route or seating arrangement that inconvenience the passenger—such as a different airport for departure or a downgraded seat—refunds are required if the passenger opts not to take an alternative.

There are also new protections for issues beyond flights themselves. If checked baggage doesn’t arrive within 12 hours on domestic flights or up to 30 hours on international flights, passengers can get a refund on bag fees. Plus, if a passenger pays for services like inflight Wi-Fi, seat selection, or entertainment, and they aren’t available, the airline must refund those fees as well.

These changes bring a new level of transparency and accountability for airlines, making air travel a bit smoother and more reliable for passengers.