Airlines Now Have to Automatically Refund You in These 5 Situations

As millions of Americans prepare to travel this holiday season, new federal rules will make it easier to get your money back for flight cancellations, delays and several other travel headaches.

The U.S. Department of Transportation first proposed the automatic refund rules in April, and they began rolling out last week. These enhanced consumer protections were largely born out of deep frustrations — heightened during the pandemic — over a lack of recourse when passengers run into issues with their airline. The rules apply to all significant flight changes, even ones caused by issues beyond the airline's control, like weather.

“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Transportation Secretary Pete Buttigieg recently tweeted. “Airlines are required to provide prompt cash refunds without passengers having to ask.”

Here’s when an airline owes you an automatic refund

In a recent speech at the National Consumers League, Buttigieg said that air travel represents a “civilizational achievement” but oftentimes the actual experience of flying these days is “maddening.”

He said the new rules are meant to ease the stress of taking to the skies, stating that he believes they are some of the most “significant enhancements to empower airline passengers” in the Transportation Department's history.

The official regulations outline clear instances when passengers are owed automatic refunds for the ticket, including:

1. When an airline cancels your flight and doesn’t offer alternative transportation
2. When your flight itinerary is significantly changed and the carrier doesn’t offer alternative transportation
3. When the alternative transportation option(s) for a canceled or delayed flight significantly changes your original itinerary
4. When an airline offers travel credits or vouchers for significantly delayed or canceled flights instead of a comparable alternative itinerary
5. When your flight is significantly delayed or canceled and you do not respond to the airline’s offer for alternative transportation, travel offers or vouchers for a delayed or canceled flight; a lack of response is to be seen as a rejection of the alternatives to a refund

The DOT rules now define “significant” delays as three hours or more for domestic flights and six hours for international flights.

If, for example, your domestic flight was canceled for any reason — including strikes or bad weather — and the airline offered to rebook you on a new flight that was four hours later, you'd be entitled to an automatic refund assuming you refused the alternative flight. That part is key: The refunds are only available if you don't accept the changed route.

Other itinerary changes such as additional layovers, different departure or arrival airports and downgrades on seat class (i.e. first class to coach) are also considered “significant changes” to your itinerary.

You shouldn't be required to take any action to receive a cash refund if you do not accept the alternative route, voucher or credits. Even if you do not respond, the airline should assume you are declining the alternative options and provide a prompt cash refund.

Partial refunds

Automatic refunds for baggage fees are now required as well if your luggage arrives 12 hours later than your arrival time for domestic flights. For international flights, the time frame ranges from 15 to 30 hours from arrival time.

Similarly, charges for other “ancillary services” that were not provided during the flight must be automatically refunded. Such services include carry-on bags, in-flight food, snacks, beverages, Wi-Fi, seat upgrades, lounge access, blankets and pillows.

Before offering any travel vouchers or credits, airlines are required to inform you of the automatic cash refund option. And all cash refunds are supposed to be “prompt,” defined as within seven business days for purchases made with a credit card or 20 calendar days for all other purchase methods.

Beginning in 2025, additional rules will go into effect regarding “serious communicable diseases.” If a licensed medical professional advises you not to travel due to an illness, the airline must provide a travel credit or voucher valid for at least five years. In this instance, cash refunds are not required, and the airline may request a written statement or documentation to confirm.

If the airline is not complying with the new rules, or you have other issues with the airline such as discrimination, you can use this form to submit a formal complaint to the DOT.

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