Airlines now required to issue prompt refunds for delayed or canceled flights

Airlines in the United States are now required to provide cash refunds to passengers if their flight is significantly delayed or canceled.

Transportation Secretary Pete Buttigieg announced the new rule in April and said on X on Monday that it is now in full effect.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” Buttigieg wrote. “Today, our automatic refund rule goes into full effect. Airlines are required to provide prompt cash refunds without passengers having to ask.”

Before the change, airlines were permitted to set their own standards for what kind of flight changes warranted a refund, and the final rule by the Department of Transportation creates more certainty for consumers.

Under the new DOT rules, airlines are required to issue refunds within seven business days for tickets purchased with a credit card and within 20 calendar days for other forms of payment.

A refund may also be issued for a checked bag fee if a passenger files a mishandled baggage report and it is not delivered within 12 hours of their domestic flight arriving at the gate, or within 15 to 30 hours of their international flight arriving at the gate, depending on the length of the flight.

The DOT said it is also working on rules for family seating fees, expanding rights for passengers who use wheelchairs and ensuring they can travel safely and with dignity, and mandating compensation and amenities if flights are delayed or canceled by airlines.

Have a news tip? Contact Alexx Altman-Devilbiss at [e-mail].