Flight delays and cancellations are some of the most stressful issues to deal with while traveling. Even more of a headache? Trying to get flight cancellation compensation from the airline for your airfare or for any extra fees you paid for, like checked baggage.
But now, travelers have one less thing to worry about thanks to new automatic refund rules that officially went into effect on October 28, 2024. The Department of Transportation now requires airlines provide automatic refunds to passengers if their flight is canceled or significantly changed. That means cash refunds will automatically be granted if the passenger refuses their changed flight schedule, rebooking on an alternative flight, or other compensation like a flight voucher.
The DOT first announced the new federal rules on how—and when—airlines must refund customers back in April 2024. The new rules apply to flights to, from, or within the United States on foreign or domestic carriers, making them some of the most consumer-friendly regulations the industry has seen to date.
“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” Secretary of Transportation Pete Buttigieg said on X. “Airlines are required to provide prompt cash refunds without passengers having to ask.”
Here’s a breakdown of the new rules and how they will impact passengers:
Refunds for significant flight changes and cancellations
Under the new rules, passengers are entitled to automatic refunds for flights that are canceled, significantly delayed, or experience a “significant change” for any reason—including “uncontrollable” factors such as weather. This applies only if alternative transportation or travel vouchers aren’t available or are rejected by the passenger. That’s the key condition. If an airline is able to book you on another flight—on the same day or even the next—and you accept it, then the new rules don’t apply. But if you refuse the rebooking, then you are entitled to the automatic refund.
Additionally, the new rule defines what the DOT considers a “significant change” for the first time. Adjustments to a flight itinerary that meet any of the following criteria will be considered significantly changed—and therefore, entitled to a full refund:
- Changes to departure or arrival times that are more than 3 hours domestically and 6 hours internationally
- Departures or arrivals from a different airport
- Increases in the number of connections
- Instances where passengers are downgraded to a lower class of service
- Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability
