Department of Transportation requires airlines to issue refunds for canceled flights

As of Monday, travelers no longer need to worry about begging their airlines for a refund after their flight gets canceled.
A new rule from the U.S. Department of Transportation went into effect on Monday, requiring U.S. airlines to automatically and promptly issue a refund for canceled and significantly changed flights, per USA Today.
“Passengers deserve to get their money back when an airline owes them—without headaches or haggling. Today, our automatic refund rule goes into full effect. Airlines are required to provide prompt cash refunds without passengers having to ask,” Transportation Secretary Pete Buttigieg wrote on X.
The rule, announced by the Department of Transportation in April, requires U.S. airlines to hand out refunds and not vouchers.
Before the rule, airlines were able to decide how long a delay could last before issuing refunds; now, there are specific guidelines to when a refund needs to be issued, per The Hill.
The refunds must be issued automatically “without passengers having to explicitly request them or jump through hoops,” according to the Department of Transportation.
Airlines must also refund the full amount the passengers paid. “The refunds must include all government-imposed taxes and fees and airline-imposed fees,” per the Department of Transportation.
According to The Hill, if a passenger paid with a credit card their refund must be issued within seven days and if they paid with another method it must be issued within 20 days.
“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,” according to a statement from the Department of Transportation.
According to The Hill, domestic flights must be delayed three hours and international flights must be delayed six hours for a passenger to be entitled to a refund.
Significant changes also include departing or arriving from a different airport, an increased number of connections, and downgrades to a lower class of service, according to the Department of Transportation.
According to The Hill, the Department of Transportation also requires airlines to refund checked bag fees for lost bags or significantly delayed baggage return.
A refund is required if a bag is not delivered “within 12 hours of a domestic flight’s gate arrival, while international flights will have 15-30 hours to return a lost bag, depending on the flight’s length,” according to The Hill.
If passengers paid for an extra service and the service is not provided, they are entitled to a refund, according to the Department of Transportation.
These extra services include Wi-Fi, in-flight entertainment and seat selection.
According to USA Today, passengers will be entitled to airline credit if they are “restricted by a government or advised by a medical professional not to travel because they have been diagnosed with a serious communicable disease after booking a flight.”
The airline credit issued must be valid for at least five years starting from the issue date, per USA Today.
This part of the new rules will not fully take effect until May 2025.