Airline-Refund Rules Go Into Effect Today—Here’s What You Need To Know

Starting today, U.S. airline passengers should no longer have to jump through hoops to get a refund if their flight is canceled or “significantly changed.”

The U.S. Department of Transportation in April issued a new standardized rule that requires airlines to automatically give passengers refunds when certain things go awry. Some airlines already had similar policies, but the rule sets a standard across the industry and eliminates the need for customers to navigate the airlines’ systems to request a refund. The rule takes effect Monday.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” Transportation Secretary Pete Buttigieg said at the time . “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

Here’s what the rule entails.

• Canceled or “significantly changed” flights: You will be entitled to a refund if your flight is canceled or “significantly changed” and you don’t accept airlines’ offers of alternative flights or travel credits. “Significant” changes include domestic flights that depart or arrive more than three hours late and international flights delayed at least six hours; when you are downgraded to a lower class of service; you depart from or arrive at a different airport; or you’re forced to have a higher number of connections.
   
• Significantly delayed baggage return: If you file a mishandled baggage report, you will be entitled to a refund on your checked bag fee if your luggage is not delivered within 12 hours of your domestic flight’s gate arrival, or 15-30 hours of your international flight’s arrival, depending on the flight’s length.
   
• Extra services not provided: You will be entitled to a refund for fees paid for things like Wi-Fi, seat selection, or inflight entertainment if an airline fails to provide the service.

The rule also requires airlines and ticket agents to “issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.” They also “must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.”