New airline rules require cash refunds for canceled flights, prohibit surprise fees

Katlyn Brieskorn
·2 min read

TAMPA, Fla. (WFLA) — The Biden administration announced new rules requiring airlines to give passengers automatic cash refunds when flights are canceled or “significantly changed.”

The administration defines a “significant delay” as lasting at least three hours for domestic flights and six hours for international ones.

Airlines can still offer another flight or a travel credit instead, but consumers can reject the offer.

The administration said passengers can also get automatic refunds if their checked bags are significantly delayed or services they purchased, like WiFi, are not provided.

“Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how to make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone,” the Biden administration said in a news release.

According to the Department of Transportation, the final rule requires refunds to be:

  • Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.

  • Prompt: Airlines and ticket agents must promptly issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.

  • Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.

  • Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees.

The DOT is also requiring airlines and ticket agents to tell customers what fees they charge for checked bags, carry-on bags, for changing a reservation or canceling a reservation.

“This ensures that consumers can avoid surprise fees when they purchase tickets from airlines or ticket agents, including both brick-and-mortar travel agencies or online travel agencies,” officials said.

The new rules will take effect over the next two years.

Airline passengers can visit flightrights.gov to learn more.

The Associated Press contributed to this report.

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