Recent years have brought us all too many reminders about the importance of knowing your air travel rights as a passenger. From winter weather to summer storms and last fall’s government shutdown, it’s clear that knowing what you should ask for when your flight is delayed or canceled is critical when you’re preparing to fly.
A big part of that is knowing when an airline owes you a refund.
Your rights to a refund
For domestic flights, as well as international flights departing or arriving in the U.S., you’re covered by the rules of the U.S. Department of Transportation.
Under the DOT flight refund policy, you are entitled to your money back, no questions asked, if your flight is canceled and you ultimately choose not to travel. It doesn’t matter whether the cancellation was the airline’s fault or due to something beyond its control, like bad weather.
The policy applies to any unflown portion of your ticket.
For example?
Let’s say you booked a weekend round-trip from Ronald Reagan Washington National Airport (DCA) to Boston Logan International Airport (BOS) and your flight got canceled.
The airline offers to rebook you on a later flight, but you decline. “I’ll just scrap the trip,” you think. The airline would then owe you a refund for the whole itinerary.
Another example? Let’s say you made it to Boston, but a storm canceled your return flight to Washington. You decide to take the train instead. In this case, the airline would owe you a refund for the return portion of the trip.
Refund rules apply only if you choose not to travel
Remember, though, you’re only owed a refund if you choose not to travel and don’t accept rebooking accommodations. If the airline cancels your 8 a.m. flight, rebooks you on a 1 p.m. flight the next day, and you agree to fly on it, the airline would not technically owe you a refund.
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Didn’t the federal government just pass stricter rules?
In recent years, you may have heard last year about the federal government passing stricter rules when it comes to refunds for flights.
It’s true, the consumer protections got stronger. But they’re not ironclad.
As part of the Federal Aviation Administration Reauthorization Act passed by Congress in 2024, airlines are expected to automatically notify passengers when a disruption could make them eligible for a refund.
Under the new rules, when a passenger is owed a refund, carriers must issue the refund promptly and automatically — in other words, the customer shouldn’t have to fight the airline for the refund.
How soon should airline refunds come?
Airline refunds, by law, are expected “promptly”: within seven days for passengers who paid by credit card and within 20 days for those who paid by a different means.
Does the airline owe me a refund for a flight delay?
The DOT refund rules don’t just apply to canceled flights. Under the policy, airlines must also provide you a refund for the unused portion of your ticket when a flight is significantly delayed or when the airline makes a significant schedule change.
Again, though, this is only if you choose not to travel.
What constitutes a ‘significant’ change or delay?
According to the recent law passed by Congress, a significant change or delay occurs when a domestic flight arrives at its destination at least three hours late, or an international flight arrives six hours late.
What should you do if an airline is offering a voucher instead of a refund?
Airlines are allowed to offer passengers a voucher (or miles) instead of a refund.
However, refund-eligible passengers don’t have to accept a voucher. They can insist on simply getting their money back instead.
Under the DOT’s policy, airlines offering passengers a voucher or some other form of compensation as an alternative to a refund must clearly explain to the passenger that they’re entitled to an actual cash refund if that’s what they want.
Should you ever take miles instead of a cash refund?
Think carefully before accepting airline miles instead of a cash refund. You’ll want to make sure you’re truly getting better value. Consult TPG’s points and miles valuations to check the value of what the airline is offering in loyalty currency.
For instance, let’s say you’re hoping American Airlines will give you a refund for a $217 ticket, and the airline offers you 10,000 miles instead. As of January, TPG values AAdvantage miles at 1.55 cents apiece, so 10,000 miles would be worth about $155.
Clearly, in such a case, accepting miles wouldn’t be in your best interest — though it might be a different story if American were offering, say, 50,000 miles (worth about $775, per our valuations) for your $217 flight.
Remember: Airlines tend to devalue miles over time, so if you do accept miles, we’d suggest using them as soon as possible.
What about compensation for food, hotels and ground transportation?
Compensation for things like meals, an unexpected hotel stay or an Uber ride in the event of a flight delay or cancellation falls under a different category than refunds.
Many airlines make guarantees about what they’ll provide in the event of a cancellation or significant delay. Those promises are laid out on the DOT’s airline customer service dashboard.
However, there are two things to know.
These are far from ironclad
These promises are more discretionary forms of compensation. In other words, the airlines don’t technically have to offer those meal vouchers or hotel bookings. Think of this as more of a goodwill gesture that the airlines have promised their customers they’ll provide … depending on the circumstances.
It matters who caused the delay or cancellation
Also, airlines generally are only going to offer up hotel, meal and ground transportation compensation when it’s a “controllable” disruption — in other words, the airline’s fault (think maintenance, or airline staffing problems).
I wouldn’t count on that hotel voucher if your flight is scrapped because of a winter storm, for instance … or because of air traffic control delays.
This is where a credit card that offers travel insurance protections can be crucial (and, for me, really eliminates the financial stress of flight troubles).
Check out TPG’s guide to passenger rights for a better sense of what you might be owed.
Didn’t the feds propose compensation?
Just prior to leaving office, the Biden administration had proposed rules requiring airlines to pay passengers additional cash compensation when the carrier caused a cancellation or major delay.
But the Trump administration last year opted not to move forward with that measure.
Bottom line
Some airline policies can be challenging to keep track of, but the federal rules that govern refunds are relatively straightforward.
You are owed a refund for any unused portion of your ticket if your flight is canceled, significantly delayed or has a significant schedule change (no matter the reason) and you ultimately choose not to travel with that airline. That refund should come automatically and within seven days if you paid by credit card, or 20 days if you paid using a different method.
It’s likely you are not entitled to a refund if:
- Your flight is canceled or delayed and you allow the airline to rebook you on a later flight.
- You accept a voucher or some other form of compensation as a clearly stated alternative to a full cash refund.
Passengers who feel they haven’t been treated fairly by an airline or who feel their refund request has been unfairly rejected can file a complaint with the DOT.
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