DOT Introduces New Rule for Automatic Airline Refunds on Delays

What Every Traveler Needs To Know

Enhanced Airline Refund Regulations: Key Insights for Travelers

October 31, 2024

A recent regulation from the U.S. Department of Transportation (DOT) promises enhanced protection and expedited refunds for travelers experiencing flight disruptions.

airlines must refund cancelled flights

Under the new directive, airlines are obligated to automatically refund passengers for flights canceled or delayed by over three hours on domestic routes and six hours on international ones, eliminating the need for refund requests.

Transportation Secretary Pete Buttigieg highlighted that the regulation seeks to streamline refunds, prompting airlines to refund passengers swiftly—generally within seven days for credit card transactions and 20 days for other payment forms. These refunds are to be processed back to the original payment method, comprehensively covering the unused ticket portion.

The regulation clarifies what constitutes a significant delay, providing clear guidelines for refund eligibility. Moreover, if there are alterations in a flight’s route or seating that inconvenience the traveler—such as switching departure airports or downgrading seats—refunds must be issued if the traveler chooses not to accept an alternative.

In addition to flight-related issues, the rule extends protections to checked baggage and additional services. If checked baggage fails to arrive within 12 hours domestically or 30 hours internationally, passengers are entitled to a refund of baggage fees. Furthermore, passengers paying for services like inflight Wi-Fi, seat selection, or entertainment that are not provided must also receive refunds for those services.

These regulatory changes aim to enhance transparency and hold airlines accountable, aiming to make air travel a more seamless and dependable experience for passengers.

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