As of today, travelers in the U.S. can breathe a sigh of relief thanks to the U.S. Department of Transportation’s (DOT) new automatic refund rule. Announced in April, the regulation mandates that airlines provide prompt cash refunds when flights are canceled or significantly altered, or when passengers experience delays with checked bags or fail to receive purchased services.
U.S. Transportation Secretary Pete Buttigieg emphasized that “Passengers deserve to get their money back when an airline owes them—without headaches or haggling.” This change is expected to save U.S. travelers more than $500 million annually, eliminating the frustration of navigating automated customer service systems and lengthy waits for refunds.
Under the new rules, passengers are entitled to a refund if their flight is canceled or significantly changed—defined as changes of more than three hours domestically and six hours internationally—without having to accept rebooking options or travel credits. Additionally, qualifications for refunds now include significant alterations such as departures from different airports or changes in service class.