Holiday Travel Woes? This is How Airline Refunds Work Now

Traveling by air for the holidays is challenging enough. There are long lines at airport security, unpredictable weather, seemingly random flight rebookings or even cancellations. 

However, thanks to new regulations from the U.S. Department of Transportation (DOT), getting refunds for flight cancellations and significant delays has just gotten much easier. Here’s what you need to know before you fly this holiday season. 

The U.S. Department of Transportation’s Rules for Airline Refunds 

The new DOT guidelines for airline refunds, which came into effect just in time for the hectic holiday season, mandate automatic refunds for flight cancellations and significant delays. This mandate simplifies the process for travelers by making it clearer and easier to receive a refund when you’re entitled to one. Here’s a breakdown of what you can expect. 

When Airlines Owe You a Refund

According to the DOT mandate, airlines must automatically issue refunds when:

• Your flight is canceled.
• Your domestic flight is delayed by 3+ hours.
• Your international flight is delayed by 6+ hours. 
• Your departure or arrival airport changes. 
• Your number of connections increases. 
• Your cabin class is downgraded. 
• The aircraft or connecting airport is less accessible for travelers with disabilities. 
• You pay for additional services such as in-flight Wi-Fi or seat selection, and the airline fails to deliver. 

You can also get checked bag fees refunded if your luggage is delayed by 12+ hours on a domestic flight or 15 to 30 hours on international flights (depending on the length of the flights). 

Refunds are required to be processed promptly, within seven business days if you paid by credit card or within 20 calendar days for any other form of payment. You’ll receive a full refund minus any portion of the trip you’ve already completed. 

When Airlines Don’t Owe You a Refund

Of course, there are always restrictions. Airlines aren’t required to provide refunds if:

• Your delay is non-significant (e.g., a delay under 3 hours for domestic flights).
• The cause of the delay is uncontrollable, such as weather, air traffic or safety/security issues. 
• You purchased a non-refundable ticket, and the delay or cancellation doesn’t meet the criteria for a refund.

What’s more, airlines are also not obligated to reimburse incidental expenses like meals or lodging during delays. Still, some may offer meal or hotel vouchers at their discretion. It’s always a good idea to check with the airline if you’re dealing with a significant disruption. 

Other Ways to Protect Yourself Against Travel Disruption

If you fly a lot or have a big trip planned, it may be wise to consider a credit card with travel protection or travel insurance. Many credit cards offer a range of coverage that can cover the gaps of what airlines don’t address. Some examples include trip delay reimbursement, trip cancellation/interruption insurance, or roadside dispatch. We recently shared the top 9 travel credit cards that are great for frequent flyers. If you’re considering travel insurance, here’s how to determine if it’s worth it. 

Overall, this latest DOT mandate should make it easier to get compensated for significant travel disruption this holiday season and beyond. Looking for ways to save on travel in general? Check out our top tips for traveling more and spending less.