No-hassle refunds for canceled and delayed flights takes effect

But travelers may not want refunds; they just want to get where they were going

October 28, 2024

One of the most significant new protections for airline passengers in years — no-hassle refunds — is now in effect. For all travel booked starting Oct. 28, 2024, passengers are entitled to easy refunds if the flights are canceled or significantly delayed for any reason — if they want the refund.

In many cases, a passenger may not want a refund. They likely just want to get where they were going as quickly as possible. A refund might mean the traveler needs to book a new flight, which could be more expensive with a last-minute ticket.

“Significantly delayed” is now defined for the first time as three hours or more for domestic flights and six hours or more for international itineraries. There was no guarantee for a refund for delayed flights previously.

Airline passengers should know their rights going forward and remember several important things:

The law says refunds (if you want them) are the responsibility of the merchant of record. That’s whatever company’s name is on your credit card or bank statement. Refunds must be issued within seven days if by credit card; 20 days if you used another form of payment. In the past, airlines often would try to make people chase down travel agents or third-party booking sites, even if they didn’t have the person’s money. In 92% of cases, the airline is actually the merchant of record, the Department of Transportation says.
Airlines can offer a voucher/credit instead only if it is good for at least five years and the offer reiterates that consumers don’t have to accept it in lieu of a refund.
If a traveler doesn’t respond to an offer of a rebooked or delayed flight or a voucher/credit, a refund may be issued automatically.
If the cancellation or delay is the airline’s fault and the airline has committed to rebooking you with a competitor at no cost to you, then you should be able to work that out easily. It’s good for you to also look for options to suggest to the airline. (Alaska, American, Delta, Hawaiian, JetBlue and United will rebook with a competitor. Allegiant, Frontier, Southwest and Spirit won’t.)
Even though airlines don’t have to provide other types of reimbursement (hotel, food, ground transportation,) if the cancellation or delay isn’t their fault, such as those caused by bad weather, they often will if you ask.
The no-hassle refund policy also applies to luggage delayed by 12 hours or more for domestic flights, as well as services not provided such as Wi-Fi, seat selection, or inflight entertainment.

The problem of airlines not issuing refunds for canceled flights boiled over in 2020 with COVID. Airlines canceled hundreds of thousands of flights and routinely tried to push travelers toward travel vouchers that expired quickly, or would say the refund had to come from a travel agent or third-party site if that’s how the flight was booked.

Not surprisingly, complaints against U.S. and foreign airlines hit a record in 2020 that still hasn’t been matched. Travelers filed 102,550 complaints — 87% of them because of refunds, or the lack of.

The Securing Growth and Robust Leadership in American Aviation Act passed by Congress and signed by President Joe Biden on May 16, 2024, spells out travelers’ rights to refunds when airlines cancel or significantly delay flights for any reason – bad weather, equipment, staffing, TSA, etc.