Travelers Rejoice: Automatic Cash Refunds Now Required for Flight Cancellations

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Written By Blue & Gold NLR Team

 

 

As of today, travelers in the U.S. can breathe a sigh of relief thanks to the U.S. Department of Transportation’s DOT new automatic refund rule. Announced in April, this regulation requires airlines to provide prompt cash refunds when flights are canceled or significantly altered, and when passengers experience delays with checked bags or fail to receive purchased services.

U.S. Transportation Secretary Pete Buttigieg emphasized, “Passengers deserve to get their money back when an airline owes them—without headaches or haggling.” This change is projected to save U.S. travelers more than $500 million annually, easing the frustration of navigating automated customer service systems and lengthy waits for refunds.

Under the new rules, passengers are entitled to a refund if their flight is canceled or significantly changed—defined as changes of more than three hours domestically and six hours internationally—without the need to accept rebooking options or travel credits. The criteria for refunds now include significant alterations such as departures from different airports or changes in service class.

With cash refunds as the default option, travelers can look forward to a more straightforward process when facing flight disruptions.

 

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