What Travelers Need to Know to Get Their Money Back

Federal regulators now require airlines to automatically compensate passengers whose flights are canceled or significantly delayed.

The rules, drafted by the Biden administration in April and effective Oct. 28, make it easier for travelers to obtain refunds when airlines “cancel or significantly change their flights, significantly delay their checked bags or fail to provide the extra services they purchased.”

Under the new rules, enforced by the U.S. Department of Transportation, passengers are entitled to refunds when:

• Itineraries are canceled or significantly changed, and travelers do not accept alternative transportation or travel credits offered. Under this rule, the DOT defines significant change as domestic flights delayed more than three hours and international flights delayed more than six hours; a departure or arrival change to a different airport; an increase in the number of connecting flights to an itinerary; instances when passengers are downgraded to a lower class of service; and connecting flights changed to airports, flights or aircraft that are less accessible for passengers with a disability.
• Baggage returns are significantly delayed. Passengers who file for a mishandled baggage report will be entitled to a refund of their checked bagged fee if their luggage is not delivered within 12 hours of a domestic flight’s arrival time or 15-30 hours of an international flight’s arrival time.
• Extra services are not provided. If services such as wi-fi, seat selection or inflight entertainment are not provided, passengers will be entitled to a refund for fees paid for each service.

A Frontier A321neo taxis past Southwest and Allegiant aircraft at PIT on Oct. 10, 2024. (Photo by Beth Hollerich)

According to the DOT, the new rules make it “simple and straightforward” for passengers to receive the money they are owed.

“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.”

The final rule requires that refunds be automatic, prompt, in cash or original form of payment and for the full amount.

Airlines also are required to provide “prompt notifications” to consumers impacted by delayed or cancelled flights of their compensation rights to their tickets and extra service fees, as well as any related policies.

Additionally, new guidelines require airlines to provide travel credits or vouchers to passengers unable to travel because of government restrictions imposed during a communicable disease or on the advice of a medical professional.

Consumers, however, may need to provide documented evidence for these requests. Travel credits or vouchers must be transferrable and valid for at least five years from the date of issuance.

The agency wrote the new rule after receiving overwhelming complaints from travelers against airlines for their handling on refunds during the COVID-19 pandemic. According to the agency, 87 percent of total complaints received by the DOT in 2020 stemmed from airlines refunding travelers.

A full report of the new guidelines can be found at the DOT’s website.