The regulations of DOT airlines mandate automatic reimbursements for flights

Many travelers have experienced a long delay at the airport and the hassle of dealing with customer service. 

Complaints about airline service – particularly the refund process – skyrocketed during the COVID-19 pandemic as many flights were canceled or delayed.

But some online posts claim the federal government is simplifying the process of getting a refund if your flight is canceled or significantly delayed. They say the Department of Transportation announced a new rule for all airlines requiring “automatic refunds” in these cases. 

Will airlines be required to give automatic refunds to passengers whose flights are significantly delayed or canceled?

Yes, airlines will be required to give automatic refunds to passengers whose flights are significantly delayed or canceled if they choose not to rebook on another flight. 

The Biden administration announced new rules on Wednesday, April 24, requiring airlines to automatically issue cash refunds for flights that are canceled or significantly delayed if a person does not choose to get rebooked onto another flight. 

Airlines are already required to issue refunds for canceled or significantly delayed flights, but these new rules ensure that passengers won’t have to jump through hoops to request a refund in order to get it. The rules also require airlines to provide refunds in cash – not vouchers or travel credits, unless someone chooses one of those options.

The new rules are expected to take effect in late October, according to the Department of Transportation (DOT) and FlyersRights, a nonprofit advocacy organization.

There hasn’t been a federal rule in place for how long delays must last before someone receives a refund, meaning airlines have been able to make their own rules. Now, airlines will have to follow federal standards for issuing refunds in the event of delayed flights. 

The DOT says it will now define a “significant change” as a delay of more than three hours for domestic flights and more than six hours for international flights. 

Airlines will still be allowed to offer another flight or alternative forms of reimbursement, such as vouchers or travel credits, in the event of a delay or cancellation. But they must inform passengers of their right to a cash refund first, according to FlyersRights. 

These refunds must be issued automatically “without passengers having to explicitly request them or jump through hoops,” the DOT says. 

Refunds must also be issued within seven days if someone used a credit card to purchase their ticket and within 20 days for “other payment methods,” according to the DOT.

People will also have the right to a refund when an airline changes their departure or arrival airport, lowers their class of service, or adds connecting stops. Those with disabilities will also have “additional refund rights” when an airline “changes their connecting airport or removes an accessibility feature” through a plane change, FlyersRights says.

The rules also extend to refunds for checked-bag fees if a person’s baggage is not delivered within 12 hours of their domestic flight arriving at the gate, or 15 to 30 hours of their international flight arriving at the gate. 

In addition, refunds include fees for add-on purchases, such as Wi-Fi or seat selection, if the airline does not provide these services, the DOT says.