Good news for air travelers in the U.S.: The Department of Transportation (DOT) has unveiled a series of landmark rules designed to bolster passenger rights when flights are significantly delayed or canceled. Transportation Secretary Pete Buttigieg announced on Wednesday that airlines will now be mandated to automatically issue cash refunds to passengers affected by substantial flight disruptions. This move marks the most significant expansion of passenger protection regulations in the DOT’s history, aiming to eliminate the hassle and uncertainty travelers often face when seeking compensation for flight inconveniences.
Under these new regulations from the Department of Transportation, airlines are no longer at liberty to arbitrarily determine the threshold for flight delays that warrant a refund. The DOT has set clear standards: passengers are entitled to a full refund if their domestic flight is delayed by more than three hours, or if an international flight faces a delay exceeding six hours. These rules apply universally, regardless of where the ticket was purchased – whether directly from the airline, through a travel agent, or via third-party booking platforms like Expedia or Travelocity.
Passengers navigate airport terminal as planes are parked at gates, illustrating potential flight delays under Department of Transportation regulations.
The DOT’s announcement clarifies that passengers are eligible for a refund in situations where their flight is canceled or undergoes a significant schedule change, and they choose not to accept alternative transportation arrangements or travel credits offered by the airline. This provision ensures that passengers have the right to their money back when their travel plans are disrupted, rather than being forced to accept vouchers or alternative flights that may not suit their needs.
Furthermore, the Department of Transportation is extending these consumer protections to baggage handling. According to the new DOT rules, airlines must also provide cash refunds if checked baggage is lost and not returned to the passenger within 12 hours for domestic flights. This addresses another significant pain point for travelers, ensuring compensation for the inconvenience and potential costs associated with delayed baggage.
The timeframe for refunds is also clearly defined by the Department of Transportation. Airlines are required to issue refunds within seven days of the passenger’s request. Critically, these refunds must be in cash, unless the passenger explicitly opts for an alternative form of compensation. This provision puts an end to the common practice of airlines issuing vouchers or travel credits as default refunds, ensuring that passengers receive their money back in a usable form.
Transportation Secretary Pete Buttigieg announcing new Department of Transportation rules on airline flight delay refunds at a press conference.
Secretary Buttigieg emphasized the rationale behind these new rules, stating, “Passengers deserve to get their money back when an airline owes them — without headaches or haggling.” He highlighted that the DOT is committed to making air travel more consumer-friendly and accountable. Beyond flight delays and cancellations, the DOT is actively working on additional regulations to protect passengers, including rules concerning family seating fees, enhanced rights for passengers who use wheelchairs, and mandated compensation for amenities in cases of airline-caused delays or cancellations.
The DOT is also tackling the issue of hidden fees in air travel. Buttigieg noted that the department is focused on preventing airlines from surprising passengers with unexpected charges, a move projected to save Americans billions of dollars annually. The new DOT rules stipulate that passengers are entitled to refunds for extra services they paid for but did not receive, such as Wi-Fi access, seat selection, or in-flight entertainment.
These regulations follow a record $140 million fine levied by the DOT against Southwest Airlines in response to its operational meltdown during the 2022 holiday season. Buttigieg cited this fine as setting a “new standard” for airline accountability and passenger rights, signaling a tougher stance from the DOT on airline practices.
While acknowledging the importance of a thriving airline industry, Buttigieg clarified that passenger protection is a top priority. He reiterated that while refund requirements were technically already in place, the new DOT rules are designed to enforce these obligations more rigorously and ensure passengers actually receive the refunds they are entitled to.
Airlines for America, a trade association representing major U.S. airlines, responded to the new rules by stating that its members already offer a range of fare options, including fully refundable tickets. The association emphasized that consumers are presented with choices regarding refundable ticket options that best suit their needs. They also noted that the largest U.S. airlines issued a substantial $43 billion in customer refunds between 2020 and 2023, with nearly $11 billion refunded in the past year alone. Despite the industry’s response, the Department of Transportation’s new rules represent a significant step forward in strengthening passenger rights and ensuring fair treatment in air travel, particularly when flights face disruptions and delays.
