U.S. DoT New Rules Make Airline Refunds Easier for Passengers

Getting your money back after an airline cancels or changes your flight has become simpler, thanks to new Department of Transportation (DOT) rules that went into effect on October 28, 2024. These regulations overhaul how airlines handle refunds for cancellations, delays, and other flight disruptions, marking a significant victory for air travelers.

The new rules ensure that passengers are automatically refunded if their flight is canceled for any reason. This includes a full refund via the original payment method (credit card or cash), minus any segments already flown. Airlines are no longer allowed to offer travel credits or vouchers unless the passenger agrees to them.

Transportation Secretary Pete Buttigieg praised the changes, stating, “Passengers deserve to get their money back when an airline owes them—without headaches or haggling.” The rules mandate that refunds be processed within 20 business days, with credit card refunds required within 7 business days. Previously, passengers often faced long delays waiting for their refunds.

Automatic Refunds for Cancellations and Changes

The new regulations also provide clear guidelines for what qualifies as a significant change to a flight. Passengers are entitled to a refund if the airline alters the departure or arrival time by more than three hours for domestic flights or six hours for international flights. Other qualifying changes include a shift in departure or arrival airport, the addition of an unexpected connection, or a downgrade in service class.

Passengers with disabilities are also entitled to a refund if the airline changes the flight to a less accessible airport or aircraft. Airlines must also refund add-on services, such as seat selection or Wi-Fi, if those services are not provided.

Refunds for Delayed Baggage

Under the new rules, passengers are also entitled to a refund of bag fees if their checked luggage is not returned within a specified time. For domestic flights, airlines must return bags within 12 hours; for international flights, bags must be returned within 15–30 hours, depending on the flight length. If baggage is delayed, passengers must file a mishandled baggage report with the airline to receive their refund.

Faster Refund Processing

One of the most significant improvements is the speed with which refunds must be processed. Airlines are now required to issue refunds for credit card payments within 7 business days and for other payment methods within 20 business days, a stark contrast to the weeks or months it could take previously.

Passenger Rights Expanding in 2025

In 2025, additional protections will be introduced, including transferable vouchers for passengers who cannot fly due to government restrictions or medical advisories related to a “serious communicable disease.” These vouchers, valid for five years, will be a significant improvement over the previous one-year, non-transferable vouchers.

Passengers will also now be informed of their right to a refund if a flight is canceled or significantly changed. If an airline fails to notify passengers or provides inadequate customer service, passengers can file a complaint with the DOT.

With these new rules, the process of receiving refunds has become more transparent and efficient, making it easier for passengers to reclaim their money without unnecessary delays.

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