As of October 28, 2024, the United States Department of Transportation (DOT) has implemented new consumer protections for airline passengers, which I’d consider to be great news. This policy was first proposed back in August 2022, but as you’d expect, it takes quite some time for new regulations to take effect.
In this post:
New automatic refund rules for canceling flights
Thanks to new regulations in the United States, airlines are now required to provide automatic refunds if a flight is canceled or has a significant schedule change, and if passengers don’t want to accept the significantly changed flight, be rebooked on an alternative flight, or accept alternative compensation.
The definition of a canceled flight is pretty straightforward, while for these purposes a flight that’s “significantly changed” would be a domestic flight with a change of over three hours, or an international flight with a change of over six hours.
Airlines have to refund passengers within seven business days if they bought a ticket with a credit card, and have to refund passengers within 20 business days if they used another form of payment. Airlines also have to clearly spell out that they’re required to do this.
It’s great to see these changes implemented, since they’re pretty common sense regulations, you’d think. However, during the pandemic, airlines certainly tried to see what they could get away with. Presumably avoiding a similar situation in the future is part of the motivation for these changes.
As Transportation Secretary Pete Buttigieg describes these changes:
“Passengers deserve to get their money back when an airline owes them — without headaches or haggling. Today, our automatic refund rule goes into full effect. Airlines are required to provide prompt cash refunds without passengers having to ask.”
New regulations for baggage and ancillaries
The latest regulations also provide more protection to consumers related to ancillaries, including bags.
First of all, passengers who have filed a mishandled baggage report are entitled to a refund of their checked bag fee if the bag is not delivered within the applicable timeframe. That timeframe is starting 12 hours from when a passenger’s domestic flight arrives at the gate, and either 15 or 30 hours from when a passenger’s international flight arrives at the gate, depending on the length of the flight.
On top of that, passengers are entitled to a refund for the fee they paid for an extra service, such as Wi-Fi, seat selection, or inflight entertainment, if the airline fails to provide this service.
All of these seem like totally fair policy changes that simply force airlines to do what they should’ve done all along. Admittedly manage your expectations when it comes to some of these. For example, you’d only get a refund for inflight entertainment if you specifically paid for that (rather than just being on an airline where the included inflight entertainment is broken).
Bottom line
The Department of Transportation has implemented new consumer protections. This includes a new automatic refund requirement in the event of a flight being canceled or having a serious schedule change. There are also refund regulations if your bag is delayed, or if you purchase ancillaries but don’t receive them as you should. These are some minor but pro-consumer changes, and I’m happy to see them.
What do you make of the DOT’s new policies?
These regulations are still pathetically weak compared to EU/UK261 (a similar version of which has also been adopted in Turkey and Israel).
Two very basic rights are still missing - the right to be rebooked at the earliest opportunity (even on other airlines), and the right to accommodation and food during delays. That is the bare minimum I would expect in a civilised country.
It would also be great to get compensation for delays/cancellations but...
These regulations are still pathetically weak compared to EU/UK261 (a similar version of which has also been adopted in Turkey and Israel).
Two very basic rights are still missing - the right to be rebooked at the earliest opportunity (even on other airlines), and the right to accommodation and food during delays. That is the bare minimum I would expect in a civilised country.
It would also be great to get compensation for delays/cancellations but despite the "compensation culture" in the US, the airlines have successfully lobbied against any sort of liability, even when they're at fault.
A good start, but still a long way away from the EU Regulation EC261/2004 unfortunately
Hi @Ben
I know this is out of topic but i wanted to request you for an article on Cathay Pacific's new Aria business class suites, premium economy and economy class. I would love to hear your thoughts about the Aria suites. In my opinion those seats are not revolutionary but an evolution of the current business class seats with some new technology and doors. I will appreciate an article on the suites.
And when are you planning to fly the Aria suites?
What about weather?
DELTA won't comply!
How does it work if one leg of a multi-leg itinerary is cancelled?
Most people if their flight is delayed or cancelled are going to be rebooked by that same airline because that airline has the best options.
Airlines don't interairline like they did 20 years ago. Thank cheap tickets (which you all claim to love) and packed planes. There needs to be a seat to put you in. Moreover, if you have an exit row with United unless you have real time sensitive situation are you...
Most people if their flight is delayed or cancelled are going to be rebooked by that same airline because that airline has the best options.
Airlines don't interairline like they did 20 years ago. Thank cheap tickets (which you all claim to love) and packed planes. There needs to be a seat to put you in. Moreover, if you have an exit row with United unless you have real time sensitive situation are you going to trade it for a middle Delta seat save for a short flight. And let's not forget most delays and cancellations are weather and/or ATC related and the airline isn't going to interairline you unless maybe you're at the invite only elite level.
Lot of hot air.
Any recourse for those with existing Travel Credits? Would prefer a straight refund to CC rather than an expiring credit held hostage by Delta
Very welcome and reasonable rules
I expect some issues regarding the need to refund for delays
For instance, if a flight hits a three hour delay, is a traveler still entitled to a refund if they board another flight and 'no show' their original flight that finally takes off at a 5 hour delay? Is there a right to avoid refunding a linked return leg?
From what I understand, if the airline refunds you they will refund ALL non used flight segments of your itinerary. I do forsee some problems there. If you are no show on the alternative flight the airline will proactively refund the unused segements as per new rule withount needing to ask or receive the confirmation the customer really wants to be refunded.
There is a huge problem that this "solution" creates. Say there is a Crowdstrike related meltdown at Delta again. Delta can comply with the new regulations by saying "you are in Augusta, GA wanting to go home to Oklahoma City and your return is now rescheduled for 6 days later....if you don't accept it, here's your money back....so what that you are stranded".
A more effective solution would be to force Delta to get to...
There is a huge problem that this "solution" creates. Say there is a Crowdstrike related meltdown at Delta again. Delta can comply with the new regulations by saying "you are in Augusta, GA wanting to go home to Oklahoma City and your return is now rescheduled for 6 days later....if you don't accept it, here's your money back....so what that you are stranded".
A more effective solution would be to force Delta to get to back by United, American, or someone else as one option.
But congratulations to Mayor Pete. That is why we need to vote for Harris. She will keep Mayor Pete. She will also punish the rich and make them pay their fair share. She might even punish these cocky frequent flyer elites who have a fat head and lots of miles. Tax those people because they should pay their fair share and give miles to the poor.
@ derek -- I'm not sure I follow your logic as to how this solution creates a new problem? It just clarifies that in the event that you don't take a flight that has a significant schedule change, you're due an automatic refund.
Yes, I'd absolutely love to see more protection between carriers in the event of irregular operations, but that's an unrelated topic. This new regulation doesn't give airlines an out when it...
@ derek -- I'm not sure I follow your logic as to how this solution creates a new problem? It just clarifies that in the event that you don't take a flight that has a significant schedule change, you're due an automatic refund.
Yes, I'd absolutely love to see more protection between carriers in the event of irregular operations, but that's an unrelated topic. This new regulation doesn't give airlines an out when it comes to providing care and rebooking passengers on the next available flight within their policies.
Also, speaking of CrowdStrike and Secretary Buttigieg, remember how Delta ended up being strong armed into compensating passengers for cash tickets on other airlines? Well, we have Buttigieg to thank for that, because Delta reversed its stance shortly after he announced that the airline would be investigated.
Look, we all have our political beliefs, but let's make this blog a place where we can escape the typical news cycle out there. Suggesting that Harris "will also punish the rich and make them pay their fair share" has nothing to do with the topic at hand.
"Suggesting that Harris "will also punish the rich and make them pay their fair share" has nothing to do with the topic at hand."
(It's hard to talk sense to RWNJs)
@travlinwily I agree it's hard to talk sense to RWNJs so I anticipate it being hard to talk with you. Harris is the answer.
Ben - I believe that Ben's logic is that Delta would rather refund you $200, than pay AA or United $600 to get you on a flight sooner than 6 days out. Assuming that Delta pays AA or United the current fare.
This solution creates a new problem because airlines can now wash their hands off the problem by giving you a refund. They can do so and make you stranded in a faraway airport you unless you agree to a very inconvenient replacement flight. They can then say that they offered you a refund but the passenger did not accept this legally sufficient remedy.
@derek, why do you think you wouldn't be able to speak with an agent to try and find a different routing, as you already can do if you don't like the new itinerary they give you? All this rule does is require a full refund in 7 days if you choose to get a refund, you're way overthinking this.
A lot of media outlets and influencers have misconstrued this to include delayed flights, without stating the caveat that you must also cancel/not take the flight as well. This will lead to tons of confusion, and perhaps a lot of anger and frustration at the airport.
As a PSA, I would be extra clear that you must cancel and not take your delayed flight.
@ Sel, D. -- Wait, there's misinformation on the internet?!? :p
@Lucky - point taken, but this is pretty bad. Just go to google news and type in "delayed flights" and look at the results for yourself. I think there could be widespread confusion. Misinformed people yelling at gate agents for refunds during the boarding process isn't going to be good for anyone.
What about weather? I assume not covered,
THANK YOU, MAYOR PETE!
Pro-consumer is always a good thing. Republicans you've been lied to if you believe the "free market" (LOLOLOL) solves things
The United States doesn't have anything resembling a free market.
In the long run, this will only result in higher fares for everyone. That’s the difference between free market and govt regulations. I’m not opposed to this idea but there are always repercussions with govt involvement. Expect higher rates.