New USDOT rules allow for speedy airline refunds

Now travelers can submit complaints in case of significant flight cancellation, delays, broken seats, WiFi malfunction or mishandling/hold up in returning their checked baggage.

The US Department of Transportation’s (USDOT) new consumer protection regulations were announced in spring, and some of them went into effect earlier this week.

Aimed at getting quick refunds from airlines, the law requires carriers to proactively offer refunds instead of vouchers without passengers having to ask.

The law also mentions, for the first time, how long a delay is considered refund-worthy. Airlines must automatically refund passengers for canceled flights or if a plane is delayed by 3 hours for domestic and 6 hours for international flights.

Customers can also get a refund if a flight change significantly affects travel and leads to an increased number of connecting flights, a downgrade in seating class, or a change of airport.

If the checked bag is mishandled and not delivered within 12 hours for domestic flights (or longer for international flights), passengers can get their baggage fee back.

If a passenger pays for in-flight WiFi, a specific seat, or entertainment and doesn’t receive the services, they’re entitled to a refund.

Travelers can submit refund complaints through USDOT’s website.

Big number
Over $43 billion in refunds have been issued by the 11 largest passenger airlines in the country between January 2020 and December 2023.