The Department of Transportation’s new refund rule for air travelers has officially landed. If your domestic flight is canceled or delayed by more than three hours, or your international flight by over six, you're now entitled to a full refund automatically–no hoops, no hassle.
Parts of the new regulation took effect back in May after FAA funding was reauthorized, but some provisions needed a bit more runway to launch. Previously, airlines were required to refund travelers if their flight was canceled and they declined alternative options. Now, the DOT has clearly defined when and how those refunds should be processed. Under the rule, airlines must automatically issue refunds without passengers needing to request them, completing the process within seven days for credit card purchases and within 20 days for other payment methods.
Refunds must go back to the original form of payment–no airline vouchers or credits allowed unless the ticket was initially paid for that way. And the refund has to cover the entire unused portion of the ticket. If some legs of a trip were already flown, those won’t be refundable.
In an even bigger update, the Department of Transportation has clarified what counts as a significant delay. Where the prior rule was vague, this one spells it out–if a domestic flight is delayed by three hours or more, or an international flight by six, it's refund time. This rule applies to both departure and arrival delays.
It also covers significantly changed flights, meaning changes like leaving from a different airport, adding connections, downgrading service class or changes that make flights less accessible for passengers with disabilities.
Baggage delays make the cut, too. The DOT now requires airlines to refund bag fees if luggage isn’t delivered within 12 hours on domestic flights, or 15 to 30 hours on international flights, depending on trip length.
With these rules in place, travelers have a stronger safety net–and airlines have some new, high-flying standards to meet.