All products featured on Condé Nast Traveler are independently selected by our editors. However, when you buy something through our retail links, we may earn an affiliate commission.
If you find yourself stranded at the airport when you're supposed to be relaxing on vacation, the last thing you want to do is haggle with the airline over flight delay compensation. Fortunately for passengers, airlines operating in the United States are now legally required to follow a strict set of rules when it comes to reimbursing travelers for flight delays and cancellations.
In October 2024, the Department of Transportation put new federal rules into effect that require all airlines flying to, from, or within the US to provide passengers with automatic refunds if their flights are canceled or significantly changed. The rules also provide a precise definition for a “significant change” to eliminate any guesswork there.
Here’s a brief overview of how the rules work: If a passenger is on a flight that is canceled or meets the definition of being significantly changed for any reason, and the flyer refuses the changed flight schedule, turns down the option to rebook on an alternate flight, or says no to any other compensation like an airline voucher, they will receive an automatic cash refund to the original form of payment for the unused portion of their ticket. The rules also cover refunds for extra fees for checked luggage that gets delayed, as well as onboard services passengers might have paid for but never received, like Wi-Fi, seat selection, or inflight entertainment purchases.
It's a major improvement for airline passenger rights in the US—but in order for travelers to take advantage of the new protections, they need to understand how the rules are applied during real-life scenarios. “Many consumers, especially in the US, remain unaware of their rights as passengers,” Eric Napoli, chief legal officer at AirHelp, which assists passengers with airline refunds and compensation, tells Condé Nast Traveler. “Until recently, there were no strict regulations to protect them. It’s crucial for passengers to be aware of these rights to ensure they receive the proper reimbursements when these situations arise.”
Here’s everything travelers should know about flight delay and cancellation compensation in the US—plus expert tips on common issues you might run into, and how to solve them.
This article has been updated with new information since its original publish date.
Refunds for significant flight changes and cancellations
Under the new rules, passengers are entitled to automatic refunds for flights that are canceled, significantly delayed, or experience a “significant change” for any reason—including “uncontrollable” factors such as weather. This applies only if alternative transportation or travel vouchers aren't available or are rejected by the passenger. That’s the key condition. If an airline is able to book you on another flight—on the same day or even the next—and you accept it, then the new rules don’t apply. But if you refuse the rebooking, then you are entitled to the automatic refund.
Additionally, the new rule defines what the DOT considers a “significant change” for the first time. Adjustments to a flight itinerary that meet any of the following criteria will be considered significantly changed—and therefore, entitled to a full refund:
- Changes to departure or arrival times that are more than 3 hours domestically and 6 hours internationally
- Departures or arrivals from a different airport
- Increases in the number of connections
- Instances where passengers are downgraded to a lower class of service
- Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability
This is a major change—and a big deal for passenger rights—because previously, the government left it up to the airlines to choose for themselves what they considered a long enough delay to warrant a refund. (Meaning, they weren’t given often.)
In another win for travelers, the DOT has spelled out how refunds must be issued. The refunds must be automatically issued “without passengers having to explicitly request them or jump through hoops.” They must also be prompt, given within seven business days for credit card purchases and 20 calendar days for other methods of payment. The refunds must equal the full amount a customer paid, including taxes and fees, minus any used portion of the ticket.
Refunds for late luggage
But it’s not just flight disruptions that are eligible for refunds under the new rules. It applies to baggage delays, too. Fliers who file a mishandled baggage report with the airline and whose delayed luggage isn’t delivered to them within 12 hours of their domestic flight or 15 to 30 hours of their international flight (depending on the flight’s length) can receive a full refund of their baggage fee. And those fees can add up—as travelers are well aware—especially in light of recent widespread checked bag fee increases. To file a mishandled baggage report, go to your airline's baggage service office at the airport (typically right next to the baggage claim area) and request a "Property Irregularity Report" (PIR) with a reference number that you can then use to fill out the mishandled baggage report on the airline's website.
Refunds for in-flight services
Passengers are also now entitled to automatic refunds for in-flight services they paid for but the airline failed to provide. These charges include services like seat selection, in-flight Wi-Fi, and in-flight entertainment purchases. If you pay for one of these add-ons and it’s not provided (for example, if the Wi-Fi doesn’t work, or you don't get the seat you paid for) you will be refunded for those services.
Refunds for when you're sick
The new regulations also lay out a framework for travelers to be protected if they can’t travel due to “a serious communicable disease” such as COVID-19. If a country or medical professional advises passengers not to travel to, from, or within the US for this reason, airline customers will be entitled to be issued a travel voucher or airline credit that’s valid for at least five years. Unlike the above refund scenarios, airlines may require passengers to submit additional documentation, such as a doctor's note, in order to receive this compensation.
These protections are designed to prevent issues that arose during the pandemic from repeating themselves. In 2020, many passengers whose flights were canceled due to travel restrictions struggled to get a cash refund from their airline. Airlines were later collectively fined $7.5 million by the DOT for delaying the refunds and forced to issue $600 million back to customers.
However, the new protections for sick travelers apply even if the US government has not declared a public health emergency, as long as a licensed treating medical professional has advised you not to travel because you have contracted (or likely to have contracted) “a serious communicable disease and would pose a direct threat to the health of others,” per the final rule.
What if an airline won't refund you?
Even though all the rules above have been clearly communicated to airlines, that doesn’t mean they will always be perfectly followed. In fact, airlines are regularly fined by the DOT for violating various federal rules, so travelers should be ready to advocate for themselves when these situations arise.
Airlines must issue notifications to fliers who are affected by delays and cancellations that state their right to a refund of their ticket price and extra service fees. However, one hurdle that passengers could run into is the airline trying to persuade you to take another form of compensation, like a voucher. "Be aware that even if the airlines may offer you a voucher or air miles, you are entitled to your money back,” says Napoli. “Always request cash compensation. We recommend passengers avoid accepting vouchers unless they are satisfied they are getting a fair deal.”
In most situations, airlines offer flight vouchers that are equal to the unused portion of your airfare, so the better deal is usually to opt for the cash refund. “If they decide not to take the flight, they don’t have to settle for a mere voucher that can go towards a future flight on the same airline but can get their money back,” Napoli says.
Be sure to document everything, too, as certain information could come in handy later. “Even when passenger protections are in place, it’s still important to gather evidence to support your claim for a refund or compensation depending on the circumstance,” Napoli says. “Keep hold of any SMS messages, emails, or notifications sent by the airline. Hold on to your boarding pass and any boarding passes for alternative flights. Take photos of any flyers or flight information boards showing your itinerary charge or disruption. Make a note of the time you arrive at your final destination. Keep receipts of everything you had to buy. Request that the airline tells you the cause of the disruption.” All of this evidence will be helpful if you need to follow up with the airline’s customer service department or file a complaint with the DOT.
Another potential sticking point under the new rules is getting the automatic refunds for extra fees paid for onboard services. Flyers should be ready to be proactive, as these situations are a little murkier than a changed or canceled flight. “If passengers have paid for additional services that were not provided during their flight, they should contact the airline directly to request a refund for those specific services,” Napoli says.
If travelers believe their airline is not following the new refund rules, they should file a consumer complaint with the DOT.
