Airlines Must Now Refund Travelers for Canceled Flights—What To Know

Airlines are now required to provide passengers with prompt automatic refunds when flights are delayed or canceled as new consumer protection rules come into force.

In April, the Department for Transportation (DOT) announced rules that would make it easier for passengers to get refunds without “having to explicitly request them or jump through hoops” when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide any ancillary services purchased.

After being signed into law in May as part of the FAA Reauthorization Act, the rules came into effect on Monday, according to a report by The Washington Post.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” U.S. Transportation Secretary Pete Buttigieg said in April. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

What Are The New Rules?

Airlines are now required to proactively offer refunds rather than vouchers or credits if the passenger does not accept other offers, such as continuing their journey on a significantly delayed journey or flying on a different flight. Passengers can still accept vouchers, credits, and alternative flights offered by the airline, but if they refuse these a refund must be completed quickly and automatically.

Airlines and ticket agents must provide refunds via original payment method used by the customer, such as credit or debit card or airline miles.

The law defines, for the first time, the duration required for a delay to be deemed “significant” enough to warrant a refund: three hours for domestic flights and six hours for international flights. Refunds must be provided within seven days if purchased with a credit card, and 20 days for all other forms of payment.

Passengers who report mishandled baggage are eligible for a refund of their checked bag fee if their bag is not delivered within 12 hours after their domestic flight arrives at the gate, or within 15 to 30 hours after their international flight arrives, depending on how long the flight is.

Paid-for ancillary services—such as for Wi-Fi, seat selection, or in-flight entertainment—need to be refunded if the airline does not provide the service as promised.

The DOT said the new requirements made “it simple and straightforward for passengers to receive the money they are owed.”

It added: “Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund—searching through airline websites to figure out how make the request, filling out extra ‘digital paperwork,’ or at times waiting for hours on the phone.”