Canceled and delayed flights can quickly ruin any vacation, and getting compensation for those flights has long been just as stressful. For decades, the rules around refunds in the United States have been ambiguous or vary wildly from airline to airline. But as of Oct. 28, getting a refund got a lot simpler.
The Department of Transportation now requires airlines to provide automatic refunds if flights are canceled or significantly changed. That means no more arbitrary credits, vouchers, or miles to compensate for travel headaches. You’re entitled to cash. But, there is one crucial caveat to the rule. You can only receive the automatic refund if you refuse the airline to rebook you on another flight or accept another form of compensation.
“When these new regulations were first discussed, a lot of media reported it as ‘Great, you can get a refund now and your flight will be rebooked.’ Unfortunately, it’s either or not both,” said Katy Nastro, a spokesperson for the travel website Going.com. “Either you take the rebooking that the airline presents, or you get a refund.”
The regulation applies to foreign and domestic airlines and states that a full refund must be given if a traveler “is not offered or rejects alternative transportation and travel credits, vouchers, or other compensation.”
The new rules use the wording “significant change” rather than delay. That term covers:
- Changes to departure or arrival times of more than 3 hours for domestic flights and 6 hours for international flights.
- Departures or arrivals from a different airport.
- Increases in the number of connections.
- Instances where passengers are downgraded to a lower class of service.
- Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.
One of the biggest wins for travelers in the new regulations is that the DOT has eliminated weather as an “uncontrollable factor.” That means airlines can’t refuse a refund because bad weather delayed or canceled a flight. If your flight is canceled for more than 3 hours (6 for international flights) due to the weather and you don’t accept an airline’s alternative, you are entitled to a full refund.
Even better, the airlines are required to automatically process the refund. Consumers aren’t required to request it or fill out paperwork. Additionally, airlines must issue refunds within seven business days for credit card purchases and 20 calendar days for other payment methods.
Refunds also apply to checked luggage fees. Travelers who file a mishandled baggage report can receive a refund of their checked bag fee if the bag is not delivered within 12 hours of their domestic flight arriving at the gate or 15 to 30 hours of their international flight arriving at the gate. You will also be entitled to a refund if you pay for Wi-Fi, seat selection, or in-flight entertainment and the airline fails to deliver.
“I think a lot of people just assumed that a refund wasn’t an option,” Nastro said. “Also consumers should know they have a right to take a travel credit. You don’t have to take a refund if you want a travel credit. Part of the new rules is that travel credits are now good for five years.”
Christopher Muther can be reached at christopher.muther@globe.com. Follow him @Chris_Muther and Instagram @chris_muther.