US airline refund rules now in effect: What you need to know

The Biden administration’s new rules, which require automatic refunds for canceled or severely delayed flights, went into effect this week.

“Passengers deserve their money back when the airline owes them — without headaches or rip-offs,” Transportation Secretary Pete Buttigieg wrote in X.

In April, the US Department of Transportation said it was issuing an automatic refund rule, which clearly spells out certain circumstances in which airlines must provide refunds.

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Prior to the rule, airlines set their own standards for when a passenger was eligible for a refund, and policies varied among carriers, making it difficult for “passengers to know or assert their refund rights,” the DOT said.

Now that it has come into effect, passengers will have an easier time getting a refund in the event that an airline cancels or significantly changes a flight, significantly delays their checked bags or fails to provide additional services they have purchased.

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When are passengers entitled to an automatic refund?

Canceled or significantly changed flights:

Under the new policy, passengers will receive a refund if their flight is canceled or significantly changed, and they will not receive additional transportation or travel credits.

According to the DOT, a “significant change” is defined as a situation where the flight’s departure or arrival time is changed by more than three hours domestically and six hours internationally.

This definition also includes changes in departure or arrival airports, increases in the number of connections or connections at different airports.

It also applies in cases where a passenger is downgraded to a lower class of service or when flights are changed to flights that are less accessible or accommodate a person with a disability, in accordance with the rules.

Travelers before a winter storm at the Detroit Metropolitan Wayne County Airport in Detroit, Michigan, on Dec. 22, 2022. (Matthew Hatcher/Bloomberg via Getty Images/Getty Images)

Refund of the most delayed fund:

Passengers who file a mishandled baggage report can receive a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate.

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On international flights, passengers will be refunded if the bag does not arrive within 15 to 30 hours of their international flight arriving at the gate, depending on the length of the flight.

Additional services not offered:

Passengers can be refunded if they paid for a service, such as Wi-Fi, seat selection or in-flight entertainment that the airline failed to provide.