New Airline Refund Rules

The latest U.S. regulations on air travel refunds mark a significant shift in consumer protections, making it easier for travelers to get their money back when flights are delayed or canceled. This change stems from a rule published by the Department of Transportation (DOT) as part of the 2024 Federal Aviation Administration (FAA) Reauthorization Act, which enforces automatic refund criteria and speeds up the refund process for consumers.

Previously, airlines had a great deal of flexibility in determining what counted as a “significant” delay. Now, under the new DOT rule effective as of August 2024, travelers are automatically eligible for refunds if domestic flights are delayed by more than three hours or international flights by six hours or more. This is a shift from the former policy, where airlines could impose varied refund thresholds, sometimes requiring delays of up to 24 hours. The rule applies to all flights operating within the U.S., meaning even international carriers must adhere to these standards when flying to or from U.S. airports.

Other scenarios now eligible for refunds include itinerary changes that add a stop to a nonstop flight, rerouting flights to a different airport, downgrading a passenger’s service class, or making a plane switch that’s less accessible to passengers with disabilities. For baggage, airlines must refund checked bag fees if bags aren’t delivered within 12 hours domestically or up to 30 hours internationally, though passengers must file a mishandled baggage report to trigger this refund.

A big improvement for travelers is the faster refund timeline. If a flight purchased with a credit card is canceled, airlines must issue the refund within seven business days (and within 20 days for other payment forms), reducing the waiting period that travelers previously faced. Furthermore, while the rule doesn’t mandate compensation for delays on flights a passenger still takes, it makes it simpler for travelers to decide whether to cancel based on these clearer, uniform guidelines.

This regulation reflects a growing focus by U.S. lawmakers and the DOT to ensure greater accountability from airlines and enhance consumer rights.

To make sure you can take full advantage of the latest airfare refund protections, follow these quick tips:

Know Your Rights and Triggers for Refunds

Be aware of the refund triggers: Delays of 3+ hours for domestic flights and 6+ hours for international flights qualify for refunds. Other triggers include significant itinerary changes, re-routing to a different airport, downgrading service class, or accessibility issues with a different plane.

Remember, the refund applies to all flights touching U.S. soil, including international airlines.

Document Everything

Keep all flight confirmations, boarding passes, and communications from the airline. Documentation will be helpful if you need to follow up with the airline or file a report with the Department of Transportation.

Act Quickly for Baggage Refunds

If your checked bags are delayed (12 hours for domestic flights, up to 30 hours internationally), file a mishandled baggage report to get a refund on bag fees. This must be done proactively by the passenger.

Use Credit Cards for Faster Refunds

If possible, purchase tickets using a credit card, as refunds for canceled flights must be issued within seven business days. Other payment methods may take up to 20 days.

Check for Extra Service Refunds

Did you pay for Wi-Fi, seat selection, or inflight entertainment that wasn’t delivered due to a flight cancellation? You can now request a refund for these additional services. Be sure to follow up if these weren’t automatically refunded.

Monitor Refund Timelines

Track when your refund should arrive. If you don’t receive it within the promised timeframe, reach out to the airline and, if necessary, file a complaint with the DOT.

Follow New Airline Communications Closely

Many airlines are updating their policies to align with the new laws. Check emails or notifications from the airline about flight delays, cancellations, or policy updates.

Keeping these tips in mind can save you time, reduce hassle, and ensure you get the refunds you're owed under the latest regulations. For more information, consult the DOT’s consumer rights portal or contact your airline directly.

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With Love,

H & B @ HBTT