Good news for airline travelers: the Department of Transportation on Wednesday announced it is rolling out new rules that will require airlines to automatically give cash refunds to passengers for canceled and significantly delayed flights.
"This is a big day for America's flying public," said Transportation Secretary Pete Buttigieg at a Wednesday morning news conference. Buttigieg said the new rules -- which require prompt refunds -- are the biggest expansion of passenger rights in the department's history.
Airlines can no longer decide how long a delay must be before a refund is issued. Under the new DOT rules, the delays covered would be more than three hours for domestic flights and more than six hours for international flights, the agency said.
This includes tickets purchased directly from airlines, travel agents and third-party sites such as Expedia and Travelocity.
The DOT rules lay out that passengers will be "entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered."
DOT will also require airlines to give cash refunds if your bags are lost and not delivered within 12 hours.
The refunds must be issued within seven days, according to the new DOT rules, and must be in cash unless the passenger chooses another form of compensation. Airlines can no longer issue refunds in forms of vouchers or credits when consumers are entitled to receive cash.
Airlines will have six months to comply with the new rules.
"Passengers deserve to get their money back when an airline owes them -- without headaches or haggling," Buttigieg said in a statement.
The DOT said it is also working on rules related to family seating fees, enhancing rights for wheelchair-traveling passengers for safe and dignified travel and mandating compensation and amenities if flights are delayed or canceled by airlines.
Buttigieg said the DOT is also protecting airline passengers from being surprised by hidden fees -- a move he estimates will have Americans billions of dollars every year.
The DOT rules include that passengers will receive refunds for extra services paid for and not provided, such as Wi-Fi, seat selection or inflight entertainment.
The rules come after the agency handed Southwest Airlines a record $140 million fine for its operational meltdown during the 2022 holiday travel season.
Buttigieg said Southwest's fine sets a "new standard" for airlines and passenger rights.
"To be clear, we want the airline sector to thrive. It is why we put so much into helping them survive the pandemic and honestly it's why we're being so rigorous on passenger protection," he said.
Buttigieg reiterated that refund requirements are already the standard for airlines, but the new DOT rules hold the airlines to account and makes sure passengers get the "refunds that are owed to them."
"Airlines are not enthusiastic about us holding them to a higher standard," Buttigieg said, adding that he "knows they will be able to adapt to this."
Airlines for America, the trade association for the country's leading passenger and cargo airlines, told ABC News in a statement that its members "offer a range of options -- including fully refundable fares." Is said consumers are "given the choice of refundable ticket options with terms and conditions that best fit their needs at first search results."
The group said the 11 largest U.S. airlines issued $43 billion in customer refunds from 2020 through 2023 nearly $11 billion in refunds just last year.
FAQs
The first rule requires airlines to promptly provide passengers with automatic cash refunds when owed because their flights are cancelled or significantly changed, their checked bags are significantly delayed, or the ancillary services, like Wi-Fi, they purchased are not provided.
Do airlines have to refund delayed flights? ›
The U.S. Department of Transportation announced new aviation rules to protect airline passengers from costly fees and delays. Under new federal rules, airline travelers are now guaranteed an automatic cash refund if a scheduled flight is delayed three or more hours domestically or delayed six hours internationally.
What are the rights of passengers on cancelled flights? ›
You're entitled to a refund
Per the DOT policy, every airline passenger is entitled to a cash refund when their flight is canceled or significantly delayed or when the schedule is significantly changed. (This only applies if they choose not to fly because of the change.)
Can I get compensation if my flight is Cancelled then delayed? ›
You're legally entitled to get compensation if the cancellation is the airline's responsibility and both the following apply: the replacement flight delays your arrival by 2 or more hours. your flight was cancelled less than 14 days before departure.
How long does a flight have to be delayed to get a refund? ›
If you have been delayed for more than five hours and no longer wish to travel then you are entitled to a refund. If you are a transfer passenger and missed your connection flight because your first flight was delayed, you are also entitled to a flight back to your original departure point.
What is the new law about delayed flights? ›
The new airline rules will require automatic cash refunds when flights are canceled or significantly changed, checked bags are significantly delayed, or extra services purchased are not provided. The refunds must be automatic, prompt, cash or original form of payment, and full amount.
Can an airline refuse to refund a cancelled flight? ›
No matter the cause — weather-related or not — airlines must pay passengers back for the unused portion of their ticket if the passenger ultimately chooses not to fly. It's worth noting that the DOT does not define what constitutes a “significant delay.”
What am I entitled to if my flight is Cancelled? ›
If an airline cancels your flight less than 14 days before departure and you choose to cancel your trip entirely, you're entitled to a refund of both your plane ticket and any pre-paid baggage fees (in most cases). This typically applies even if you have non-refundable tickets.
What are the three main rights in the air passenger bill of rights? ›
In short, the Passengers' Bill of Rights is a piece of legislation that would provide legal protection for fliers in the cases of delays, cancellations, lost baggage, and “junk fees” (in the words of President Joe Biden).
How much flight compensation am I due? ›
Flight Delay Compensation Amounts in UK Pounds
| Flight Distance | Less than 3 hours | Never arrived |
|---|
| All flights 1,500km or less | £0 | £220 |
| Internal EU flights over 1,500km | £0 | £350 |
| Non-internal EU flights between 1,500km and 3,500km | £0 | £350 |
| Internal EU flights over 1,500km | £0 | £520 |
May 20, 2024
Claiming Compensation for Flight Delays and Cancellations
Delayed flights: you may be able to claim compensation if your flight arrived 3 hours or more late. Canceled flights: you may be eligible for compensation if your flight was canceled less than 14 days before it was due to depart.
Will airlines pay for a hotel if a flight is cancelled? ›
In addition, every airline except Frontier is committed to complimentary hotel accommodations for any passenger affected by an overnight cancellation. Otherwise, here's what you can expect from different carriers for a "controllable cancellation," per the U.S. Department of Transportation website. Yes.
What is the passenger Bill of Rights compensation? ›
Protection Offered By Airline Passengers' Bill of Rights
The bill establishes that $1,350 is the minimum level of compensation an air carrier or foreign carrier must pay to a passenger denied boarding against their wish because of an oversold flight.
Do airlines have to refund for delay? ›
Under the new rules, airlines must provide automatic cash refunds to passengers when flights are canceled or significantly delayed. It defines a significant delay as three hours for flights within the U.S. and six hours for international flights.
What happens if an airline refuses to pay compensation? ›
If the ADR body or CAA cannot help with your claim, or you wish to pursue a different course of action, you could take your airline to court.
Is it legal for airlines to not give refunds? ›
Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.
Can you get compensation for flights delayed more than 3 hours? ›
When a flight delay occurs, you are entitled to assistance and a choice between rerouting, reimbursem*nt, or rebooking. If you arrive at your destination more than 3 hours after your scheduled arrival time, you are entitled to the same reimbursem*nt, rerouting, and rebooking structure as a denied boarding.
Can I sue an airline for not refunding? ›
If the airline refuses to provide you with a refund or travel voucher after that, you may have a viable claim in court. You will need to show that the airline violated a refund policy under its contract of carriage.
What are valid reasons to cancel a flight and get a refund? ›
Top Reasons Most People Cancel Trips
- Injury or Illness. Sickness and injury are the top reasons for cancelling a trip. ...
- Death. ...
- Natural Disaster. ...
- Acts of Terrorism/Evacuation. ...
- Financial Default of the Travel Company.
- Death or Hospitalization of Host.
- Residence Damage. ...
- Jury Duty or Military Deployment.
