Under the new DOT rule, airlines must issue refunds automatically when they fail to transport passengers as promised. No more navigating complex websites, filing refund requests, or waiting endlessly for assistance. Refunds are issued promptly, either in cash or to the original form of payment, and for the full ticket price.

Transportation Secretary Pete Buttigieg emphasized the broader impact of this rule:

“When an airline knows that all — instead of just a few of the passengers on a canceled flight — are likely to actually get their money back, it gives them a different set of reasons to put in the investment, and the realistic scheduling that makes those cancellations less likely to happen to begin with.”

And it’s working. The DOT reports that flight cancellations in 2025 are already below the traditional average of 2%, signaling that airlines are taking steps to reduce disruptions.

What Qualifies for a Refund?

The rule sets specific standards for when passengers are entitled to refunds:

Significant Delays

For the first time, the DOT defines “significant change” to a flight:

• Domestic Flights: Delays of three hours or longer.
• International Flights: Delays of six hours or longer.
• Other Changes: If the departure or arrival airport is changed, a connection is added, or the flight is otherwise materially altered, you’re entitled to a refund.

Downgraded Service

If a passenger is moved to a lower class of service or a plane that is less accommodating for passengers with disabilities, they are entitled to a refund.

Baggage Delays

Airlines must refund checked baggage fees if luggage does not arrive:

• Domestic Flights: Within 12 hours of arrival.
• International Flights: Within 15-30 hours, depending on flight length.
  Passengers must first file a mishandled baggage report to claim these refunds.

Nonworking Wi-Fi and Seat Changes

Passengers are entitled to refunds for:

• Paid Wi-Fi services that don’t work.
• Paid seat selections when the airline forces them to sit elsewhere.

Why This Matters

Previously, passengers faced significant barriers to obtaining refunds. Airlines often required consumers to navigate confusing websites, fill out forms, or spend hours on the phone. Many airlines also issued travel credits or vouchers instead of refunds by default, restricting passengers from using their money to rebook with a different carrier.

This new regulation eliminates these hurdles, making refunds straightforward and empowering consumers to take control of their travel plans.

How to Maximize Your Rights Under the New Rule

1. Understand Your Rights
   Familiarize yourself with the refund policies for delays, cancellations, and other qualifying issues outlined above.
2. Be Proactive
   If a flight is delayed or canceled, confirm whether your refund has been issued automatically. While the process should be seamless, it’s always a good idea to double-check your accounts.
3. File Baggage Claims Quickly
   For delayed luggage, ensure you file a mishandled baggage report promptly to qualify for a refund of your checked baggage fees.

What’s Next for Air Travel?

This new rule is part of a broader push to make air travel more passenger-friendly. As airlines adapt to these regulations, passengers can expect fewer cancellations, more realistic scheduling, and improved overall service.

While flight delays and cancellations may still be frustrating, at least now you won’t be left fighting for the refund you’re owed. With the process made automatic, you can focus on rebooking or adjusting your travel plans without unnecessary stress.

Have you experienced the impact of the new refund rules yet? Share your stories in the comments with me on thew social media links below! 

Stay Safe Fellow Wanderers!