New Rule Requires U.S. Airlines to Issue Automatic Refunds for Canceled or Majorly Delayed Flights
U.S. airlines are now legally required to issue cash refunds to passengers if their flight is significantly delayed or canceled, without the passenger needing to request a refund. This new Department of Transportation rule, which is now in effect, stipulates that airlines must automatically issue refunds — not vouchers — when a passenger’s flight is canceled or undergoes a substantial change, and the passenger declines any offered rebooking or alternative compensation.
According to the rule, refunds must be issued within seven business days for credit card purchases and within 20 calendar days for other payment methods. This update arrives just ahead of the busy holiday travel season and is effective immediately.
When airlines owe you a refund:
- Your flight is canceled
- Your domestic flight is delayed by three hours or more
- Your international flight is delayed by six hours or more
- Your departure or arrival airport changes
- The number of connections increases
- Your cabin class has been downgraded
- A change in aircraft or connecting airport is “less accessible or accommodating” to your disability
When airlines don’t owe you a refund
- Personal reasons (sickness, late for your flight, etc.)
- Weather or natural disasters
- Air traffic
- Safety or security issues
