Holiday Travel Woes? This is How Airline Refunds Work Now

Q: When are airlines required to issue refunds?

Airlines must automatically issue refunds for canceled flights, domestic delays of 3+ hours, international delays of 6+ hours, changes to airports or connections, cabin downgrades, accessibility reductions, and when paid optional services aren’t provided.

Q: How long does it take to receive an airline refund?

Refunds should be processed within seven business days for credit card payments and within 20 calendar days for other payment methods, per the DOT rule.

Q: Are airlines required to refund baggage fees?

You can claim checked bag fee refunds if luggage is delayed by 12+ hours on domestic flights or typically 15–30 hours on international itineraries, depending on flight length and circumstances.

Q: Do airlines have to refund incidental costs like hotels or meals?

No. Airlines aren’t obligated to reimburse incidental expenses such as hotels or meals during delays; some carriers may voluntarily offer vouchers, but this is not required by the DOT rule.

Q: What exceptions allow airlines to deny refunds?

Refunds aren’t required for minor delays (under the DOT thresholds), or when disruptions are due to factors outside the airline’s control—such as severe weather, air traffic control issues, or safety and security concerns.

Published by

Clara

Jan 23

Airline Refunds: What Travelers Need to Know

Flying during the holidays is stressful enough. You face long lines at security, fickle weather, and the possibility of sudden flight rebookings or cancellations.

Fortunately, a recent rule from the U.S. Department of Transportation (DOT) has simplified securing refunds for canceled flights and major delays. Here’s the key information to know before you travel this holiday season.

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

The DOT’s updated refund policy, which took effect just in time for the busy holiday travel period, requires automatic refunds for canceled flights and substantial delays. This change streamlines the refund process by clarifying when travelers are owed money and making it easier to receive it. Below is a summary of what to expect.

When Airlines Must Issue a Refund

Under the DOT rule, airlines are required to automatically provide refunds when:

Your flight is canceled.
Your domestic flight is delayed by 3 hours or more.
Your international flight is delayed by 6 hours or more.
Your departure or arrival airport is changed.
The number of connections on your itinerary increases.
Your cabin class is downgraded.
The aircraft or a connecting airport becomes less accessible for travelers with disabilities.
You paid for optional services—such as in-flight Wi-Fi or seat selection—and the airline fails to provide them.

You can also claim refunds for checked bag fees if your luggage is delayed by 12 hours or more on domestic itineraries, or between 15 and 30 hours on international routes (timing varies by flight length).

Refunds must be processed promptly: within seven business days for credit card payments, or within 20 calendar days for other payment methods. You’ll receive a full refund for the unused portion of travel, minus any segment of the trip you already completed.

When Airlines Are Not Required to Refund

There are exceptions. Airlines don’t have to provide refunds if:

Your delay is not significant (for example, under 3 hours for domestic flights).
The delay stems from causes beyond the airline’s control, such as weather, air traffic control, or safety/security concerns.
You bought a non-refundable ticket and the delay or cancellation doesn’t meet the DOT’s refund criteria.

Additionally, airlines aren’t obliged to reimburse incidental costs like meals or hotel stays during delays. Some carriers may voluntarily offer meal or hotel vouchers, so it’s wise to ask the airline if you’re facing a major disruption.

Additional Steps to Protect Yourself From Travel Disruptions

If you fly frequently or have a major trip planned, consider a credit card that includes travel protections or buying travel insurance. Many credit cards provide coverages that fill gaps airlines don’t cover—examples include trip delay reimbursement, trip cancellation/interruption insurance, and other travel-related benefits. We’ve previously covered the top travel credit cards ideal for frequent travelers. If you’re weighing travel insurance, here’s guidance on deciding if it’s worthwhile.

All in all, the DOT’s newest rule should make it simpler to obtain compensation for notable travel disruptions during the holidays and beyond. Looking for ways to cut travel costs generally? Check out our best tips for traveling more while spending less.