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Automatic refunds are now required for delayed and canceled flights

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  • The U.S. Department of Transportation's new air travel refund rule mandates automatic refunds for significantly delayed or canceled flights.
  • Domestic flights delayed by at least three hours and international flights delayed by at least six hours are entitled to a full refund.
  • Airlines must issue refunds within seven days for credit card purchases and 20 days for other payment methods.
  • The rule also requires reimbursement of fees for checked baggage if the baggage is not delivered within a certain time period, as well as for non-working or unavailable paid services such as Wi-Fi.

The Department of Transportation's new refund policy for air travelers is now fully in effect.

If your flight is canceled or delayed by more than three hours on a domestic route or more than six hours on an international route, you are automatically entitled to a refund.

“Passengers deserve to get their money back when an airline owes them – without the headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement when the rule was announced earlier this year. “Our new rule sets a new standard and requires airlines to promptly refund cash to their passengers.”

Some portions of the DOT's new rule went into effect in May when funding was reauthorized by the Federal Aviation Administration, but some provisions required a longer lead time to implement. Buttigieg emphasized what the new rules would mean for travelers and airlines in a letter to aviation executives in July.

Here you can find out what travelers need to know about how the new regulation works and their entitlements.

Refunds for canceled flights

Even before the new rule was announced, the DOT required airlines to provide refunds to travelers whose flights were canceled if they chose not to use alternative flights offered by the airline.

The DOT's guidelines clarify how and when these refunds must be processed. According to the latest guidelines, an airline must automatically issue the refund without the passenger specifically requesting it. Airlines and ticket offices are also required to complete refunds within seven days for credit card purchases and 20 days for other payment methods.

Refunds must be made to the original form of payment – they cannot be covered by flight vouchers or credits if the tickets were not paid for in this way. And the refund must cover the full, unused value of the ticket. Airlines are not obligated to provide refunds for portions of an itinerary that had already flown before the trip was canceled.

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Refunds for delayed flights

The bigger change to the DOT's policy is how it clarifies what constitutes a significant delay. Where the previous policy was unclear, the new rule stipulates that delayed flights become refundable after three hours for a domestic route or six hours for an international route. These deadlines apply to both departure and arrival delays.

The policy also covers “significantly modified” flights, which, according to the DOT, include “departures or arrivals from another airport, an increase in the number of connections, instances where passengers are downgraded to a lower class of service, or connections at other airports or.” Flights” means on different aircraft that are less accessible or less suitable for a person with a disability.

All cancellation refund policies also apply to delayed flights. This means that refunds must be made automatically and in full via the original means of payment. And as with cancellations, travelers are only entitled to a refund for a delay if they choose not to travel on the delayed flight or an alternative itinerary if the airline offers one.

Refunds for baggage problems

Passengers are now also entitled to a refund of checked baggage fees if their luggage does not arrive at their destination on time. Under the U.S. Department of Transportation's new policy, baggage fees will be refunded for passengers who file a mishandled baggage claim if their baggage is not delivered within 12 hours for domestic flights or 15 to 30 hours for international flights, depending on the date Length of flight.

Reimbursement of flight fees

The U.S. Department of Transportation rule also requires airlines to provide refunds for fees such as in-flight Wi-Fi, seat selection or in-flight entertainment if the passenger paid for such a service but it was inoperable or unavailable during the flight.

Exceptions for medical and government travel

Passengers will also soon be eligible to receive a flight credit, valid for at least five years from the date of issue, if a travel restriction is imposed on them by a government or they are advised by a doctor not to travel because they have a serious communicable disease after booking a flight disease was diagnosed. The DOT's policy states that airlines may require passengers applying for this credit to provide documentation to support their request. This part of the policy will not come into full force until May.

(This story has been updated to correct a spelling/typo, add video, and add new information.)

Zach Wichter is a travel reporter for USA TODAY based in New York. You can reach him at [email protected].

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