In recent years, we have been reminded countless times of the importance of understanding our rights as passengers when traveling by air. From winter weather to summer storms to last fall’s government shutdown, it’s clear that as you prepare to fly, it’s crucial to know what to ask for if your flight is delayed or canceled.
A big part of this is knowing when the airline owes you a refund.
Your refund rights
For domestic flights and international flights departing from or arriving in the United States, you are subject to U.S. Department of Transportation regulations.
You are entitled to a refund under DOT flight refund policy, If your flight is canceled and you ultimately choose not to travel, no questions asked. It does not matter whether the flight cancellation was the fault of the airline or due to reasons beyond the airline’s control (such as bad weather).
This policy applies to any portion of your ticket that is not flown.
For example?
Let’s say you booked a weekend round-trip flight from Ronald Reagan Washington National Airport (DCA) to Boston Logan International Airport (BOS), but your flight is canceled.
The airline offers to rebook you on a later flight, but you refuse. “I’ll cancel this trip,” you think. The airline will then owe you a refund for the entire trip.
Another example? Let’s say you arrive in Boston, but a storm cancels your flight back to Washington. You decide to take the train instead. In this case, the airline will owe you a refund for the return portion.
Refund rules only apply if you choose not to travel
But remember, this is only possible if you choose not to travel and No Accommodation rebooking is accepted. If an airline cancels your 8 a.m. flight and rebookes you for a 1 p.m. flight the next day, and you agree to take that flight, technically the airline doesn’t owe you a refund.
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Didn’t the federal government just pass stricter regulations?
In recent years, you may have heard last year that the federal government passed stricter rules when it comes to flight refunds.
Indeed, consumer protection has become stronger. But they are not ironclad.
As part of the Federal Aviation Administration Reauthorization Act passed by Congress in 2024, airlines are expected to automatically notify passengers when flight disruptions may make them eligible for refunds.
Under the new rules, when a passenger needs a refund, the carrier must do so immediately and automatically—in other words, the passenger won’t have to fight with the airline for a refund.
How long does it take for the airline refund to arrive?
Under the law, airlines are required to issue “prompt” refunds: passengers who paid by credit card will receive refunds within seven days, while those who paid by other methods will receive refunds within 20 days.
Does the airline owe me a refund because my flight was delayed?
DOT refund rules don’t just apply to canceled flights. Under the policy, airlines must also provide refunds for the unused portion of your ticket when a flight is severely delayed or when the airline makes significant changes to its flight schedule.
However, this is only when you Choose not to travel.
What constitutes a “significant” change or delay?
Under laws recently passed by Congress, a significant change or delay occurs when a domestic flight arrives at its destination at least three hours late, or an international flight arrives six hours late.
What should you do if an airline offers a voucher instead of a refund?
Airlines can offer passengers coupons (or miles) instead of refunds.
However, passengers who are eligible for a refund do not have to accept the voucher. They could insist on simply getting their money back.
Under DOT policy, airlines offer passengers vouchers or other forms of compensation as compensation choose Refund must be explained clearly Inform passengers that they are entitled to an actual cash refund if they want it.
Should you use miles instead of a cash refund?
Think carefully before accepting airline miles instead of cash for a refund. You need to make sure you’re actually getting better value. Consult TPG’s points and miles valuation to see how much the airline’s offerings in loyalty currency are worth.
For example, let’s say you want American Airlines to refund your $217 ticket, but the airline instead offers you 10,000 miles. As of January, TPG valued AAdvantage miles at 1.55 cents each, so 10,000 miles would be worth about $155.
Obviously, accepting miles isn’t in your best interest in this case, although the situation might be different if American offered you 50,000 miles on your $217 flight (worth about $775, according to our estimate).
Remember: Airlines tend to devalue miles over time, so if you do accept them, we recommend using them as soon as possible.
How is food, hotel and ground transportation compensated?
Compensation for things like meals, unexpected hotel stays, or Uber rides if a flight is delayed or canceled falls into a different category than refunds.
Many airlines guarantee what services they will provide if a flight is canceled or severely delayed. These commitments are listed on the Department of Transportation’s Airline Customer Service Dashboard.
However, there are two things to know.
These are far away from the ironclad
These commitments are a more discretionary form of compensation. In other words, airlines are not technically have Provide meal vouchers or hotel reservations. Think of this more as a gesture of goodwill that the airline promises its customers will deliver…on a case-by-case basis.
Who caused the delay or cancellation matters
Additionally, airlines typically only provide hotel, meal and ground transportation compensation when disruptions are “controllable” — in other words, it’s the airline’s fault (such as maintenance or airline staffing issues).
For example, if your flight is canceled due to a winter snowstorm or air traffic control delay, I wouldn’t count on that hotel coupon.
This is where a credit card that offers travel insurance protection is crucial (for me, it really takes away the financial stress of flying issues).
Review TPG’s Passenger Rights Guide to better understand your possible responsibilities.
Didn’t the FBI offer compensation?
Just before leaving office, the Biden administration proposed rules that would require airlines to pay passengers additional cash compensation if they cause flight cancellations or major delays.
But the Trump administration chose not to move forward with the measure last year.
bottom line
Some airline policies can be difficult to track, but the federal rules governing refunds are relatively simple.
If your flight is canceled, severely delayed, or has a major schedule change (for whatever reason) and you ultimately choose not to fly with that airline, you will receive a refund for any unused portion of your ticket. If you paid by credit card, the refund should be automatically refunded within 7 days; if you paid by other methods, the refund should be automatically refunded within 20 days.
you are probably no You are entitled to a refund under the following circumstances:
- Your flight is canceled or delayed and you allow the airline to rebook you on a later flight.
- You accept a voucher or other form of compensation as an express alternative to a full cash refund.
Passengers who feel they have not been treated fairly by an airline or who believe their request for a refund has been unfairly denied can file a complaint with the Department of Transportation.
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