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Automatic Refunds and No More Hidden Fees: D.O.T. Sets New Rules for Airlines

The Transportation Department issued new requirements on refunds when flights are canceled or delayed and on revealing “junk” fees before booking. Here’s what passengers can expect.

A blue airport screen showing extensive cancellations and delays is shown in close up with a man standing in front of it.

By Christine Chung

The Transportation Department on Wednesday announced new rules taking aim at two of the most difficult and annoying issues in air travel: obtaining refunds and encountering surprise fees late in the booking process.

“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them — without having to ask,” said U.S. Transportation Secretary Pete Buttigieg in a statement, adding that the changes would not only save passengers “time and money,” but also prevent headaches.

The department’s new rules, Mr. Buttigieg said, will hold airlines to clear and consistent standards when they cancel, delay or substantially change flights, and require automatic refunds to be issued within weeks. They will also require them to reveal all fees before a ticket is purchased.

Airlines for America , a trade group representing the country’s largest air carriers, said in a statement that its airlines “abide by and frequently exceed” D.O.T. consumer protection regulations.

Passenger advocates welcomed the new steps.

Tomasz Pawliszyn, the chief executive of AirHelp, a Berlin-based company that assists passengers with airline claims, called it a “massive step forward and huge improvement in consumer rights and protection” that brings the United States closer to global standards in passenger rights.

Here’s what we know about the D.O.T.’s new rules, which will begin to go into effect in October.

There’s now one definition for a “significant” delay.

Until now, airlines have been allowed to set their own definition for a “significant” delay and compensation has varied by carrier . Now, according to the D.O.T., there will be one standard: when departure or arrival is delayed by three hours for domestic flights and six hours for international flights.

Passengers will get prompt refunds for cancellations or significant changes for flights and delayed bags, for any reason.

When things go wrong, getting compensation from an airline has often required establishing a cumbersome paper trail or spending untold hours on the phone. Under the new rules, refunds will be automatic, without passengers having to request them. Refunds will be made in full, excepting the value of any transportation already used. Airlines and ticket agents must provide refunds in the original form of payment, whether by cash, credit card or airline miles. Refunds are due within seven days for credit card purchases and within 20 days for other payments.

Passengers with other flight disruptions, such as being downgraded to a lower service class, are also entitled to refunds.

The list of significant changes for which passengers can get their money back also includes: departure or arrival from an airport different from the one booked; connections at different airports or flights on planes that are less accessible to a person with a disability; an increase in the number of scheduled connections. Also, passengers who pay for services like Wi-Fi or seat selection that are then unavailable will be refunded any fees.

Airlines must give travel vouchers or credits to ticketed passengers unable to fly because of government restrictions or a doctor’s orders.

The vouchers or credits will be transferable and can be used for at least five years after the date they were issued.

Fees for checked baggage and modifying a reservation must be disclosed upfront.

Airlines and ticket agents are now required to display any extra fees for things like checking bags or seat selection clearly and individually before a ticket purchase. They will also need to outline the airline’s policies on baggage, cancellations and changing flights before a customer purchases a ticket.

The rules, which apply to all flights on domestic airlines and flights to and from the United States operated by foreign airlines, have varying start dates.

For example, automatic refunds must be instituted by the airlines within six months. But carriers have a year before they’re required to issue travel vouchers and credits for passengers advised by a medical professional not to fly.

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Christine Chung is a Times reporter covering airlines and consumer travel. More about Christine Chung

Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .

Airlines required to refund passengers for canceled, delayed flights

Transportation Secretary Pete Buttigieg announced the new rules Wednesday.

Good news for airline travelers: the Department of Transportation on Wednesday announced it is rolling out new rules that will require airlines to automatically give cash refunds to passengers for canceled and significantly delayed flights.

"This is a big day for America's flying public," said Transportation Secretary Pete Buttigieg at a Wednesday morning news conference. Buttigieg said the new rules -- which require prompt refunds -- are the biggest expansion of passenger rights in the department's history.

Airlines can no longer decide how long a delay must be before a refund is issued. Under the new DOT rules, the delays covered would be more than three hours for domestic flights and more than six hours for international flights, the agency said.

MORE: Amid Boeing safety probe, clock ticks on effort to disclose details of 2021 DOJ deal over 737 Max crashes

This includes tickets purchased directly from airlines, travel agents and third-party sites such as Expedia and Travelocity.

The DOT rules lay out that passengers will be "entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered."

PHOTO: A person walks through the terminal as planes remain at gates at Ronald Reagan Washington National Airport in Arlington, Va., Wednesday, Jan. 11, 2023.

DOT will also require airlines to give cash refunds if your bags are lost and not delivered within 12 hours.

The refunds must be issued within seven days, according to the new DOT rules, and must be in cash unless the passenger chooses another form of compensation. Airlines can no longer issue refunds in forms of vouchers or credits when consumers are entitled to receive cash.

Airlines will have six months to comply with the new rules.

PHOTO: U.S. Secretary of Transportation Pete Buttigieg speaks at a press conference at the Reagan National Airport on April 24, 2024.

"Passengers deserve to get their money back when an airline owes them -- without headaches or haggling," Buttigieg said in a statement.

The DOT said it is also working on rules related to family seating fees, enhancing rights for wheelchair-traveling passengers for safe and dignified travel and mandating compensation and amenities if flights are delayed or canceled by airlines.

Buttigieg said the DOT is also protecting airline passengers from being surprised by hidden fees -- a move he estimates will have Americans billions of dollars every year.

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The DOT rules include that passengers will receive refunds for extra services paid for and not provided, such as Wi-Fi, seat selection or inflight entertainment.

The rules come after the agency handed Southwest Airlines a record $140 million fine for its operational meltdown during the 2022 holiday travel season.

MORE: New whistleblower claims put Boeing's quality control under more scrutiny

Buttigieg said Southwest's fine sets a "new standard" for airlines and passenger rights.

"To be clear, we want the airline sector to thrive. It is why we put so much into helping them survive the pandemic and honestly it's why we're being so rigorous on passenger protection," he said.

Buttigieg reiterated that refund requirements are already the standard for airlines, but the new DOT rules hold the airlines to account and makes sure passengers get the "refunds that are owed to them."

"Airlines are not enthusiastic about us holding them to a higher standard," Buttigieg said, adding that he "knows they will be able to adapt to this."

Airlines for America, the trade association for the country's leading passenger and cargo airlines, told ABC News in a statement that its members "offer a range of options -- including fully refundable fares." Is said consumers are "given the choice of refundable ticket options with terms and conditions that best fit their needs at first search results."

The group said the 11 largest U.S. airlines issued $43 billion in customer refunds from 2020 through 2023 nearly $11 billion in refunds just last year.

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Airlines must cough up cancellation cash and can no longer hide fees under new federal rule

A federal rule announced Wednesday will require airlines to quickly give cash refunds — without lengthy arguments — to passengers whose flights have been canceled or seriously delayed, the Biden administration said.

“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement.

The rule from the Transportation Department says passengers who decline other reimbursement like travel credits are to get cash refunds.

Image: Salt Lake City travellers

It applies when a flight is canceled or has a “significant change,” the administration said.A “significant change” includes when departure or arrival times are three or more hours different from the scheduled times for domestic flights or six hours for international flights, and when the airport is changed or connections are added, it said.

Passengers are also to get refunds when their baggage is 12 hours late in delivery for domestic flights.

The new rule comes after promises to hold airlines accountable after major disruptions that made travel hell for passengers, including the 2022 Southwest Airlines meltdown , which resulted in almost 17,000 significantly delayed or canceled flights and a missing baggage nightmare.

The Transportation Department said that the new rule means refunds are automatic and that "airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops."

Also announced Wednesday was a rule requiring airlines to more clearly disclose so-called junk fees upfront, such as surprise baggage or other fees, the department said.

It said that rule is expected to save fliers around $500 million a year.

The surprise fees are used so tickets look cheaper than they really are, and then fliers get the unwelcome surprise of fees on checked bags, carry-on bags or reservation changes — or even discounts that are advertised but apply to only part of the ticket price, officials said.

Airlines will also have to tell fliers clearly that their seats are guaranteed and that they don't have to pay extra to ensure they have seats for flights, according to the Transportation Department.

Airlines for America, an industry trade group, said that its member airlines “offer transparency and vast choice to consumers from first search to touchdown” and that they do offer cash refunds.

The 11 largest U.S. airlines returned $10.9 billion in cash refunds last year, an increase over $7.5 billion in 2019 but slightly down from $11.2 billion in 2022, the group said.

“U.S. airlines are providing more options and better services while ticket prices, including ancillary revenues, are at historic lows,” Airlines for America said.

Left out of the federal changes announced Wednesday are those involving "family seating fees," but the Transportation Department said in a statement that "DOT is planning to propose a separate rule that bans airlines from charging these junk fees."

Travelers have complained to the Transportation Department that children weren’t seated next to accompanying adults, including in some cases young children, department officials said last year.

Fees on bags specifically have made up an increasing amount of airline revenues, the Transportation Department said Wednesday in announcing the new rules.

A Transportation Department analysis found that airline revenue from baggage fees increased 30% from 2018 to 2022, while operating revenue — which is from the flights themselves — increased by only half that amount, the department said.

Jay Blackman is an NBC News producer covering such areas as transportation, space, medical and consumer issues.

dot travel refund

Phil Helsel is a reporter for NBC News.

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Airlines are ordered to give full refunds instead of vouchers and to stop hiding fees

Joel Rose

Travelers and their luggage in a terminal at Los Angeles International Airport in August 2023. Mario Tama/Getty Images hide caption

Travelers and their luggage in a terminal at Los Angeles International Airport in August 2023.

WASHINGTON — In an effort to crack down on airlines that charge passengers steep fees to check bags and change flights, the U.S. Department of Transportation has announced new regulations aimed at expanding consumer protections .

One of the final rules announced Wednesday requires airlines to show the full price of travel before passengers pay for their tickets. The other will force airlines to provide prompt cash refunds when flights are canceled or significantly changed.

"Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them - without having to ask," said Transportation Secretary Pete Buttigieg in a statement announcing the new rules.

Taking on junk fees is popular. But can it win Biden more voters?

Taking on junk fees is popular. But can it win Biden more voters?

Surprise junk fees have become a large and growing source of revenue for airlines in recent years, according to the DOT.

"Today's announcements will require airlines to both provide passengers better information about costs before ticket purchase, and promptly provide cash refunds to passengers when they are owed — not only saving passengers time and money, but also preventing headaches," Buttigieg said.

The airline industry is unlikely to welcome the new rules. At a hearing on the proposed fee rule in March 2023, an industry lobbying group representing American, Delta and United said it would be too difficult for airlines to disclose their charges more clearly.

"The amount of unwanted and unneeded information forced upon passengers" by the new policy would only cause "confusion and frustration," warned Doug Mullen, the deputy general counsel at Airlines for America . "Very few, if any, need or want this information, and especially when they are initially trying to understand schedule and fare options."

But the DOT insists its new rule will give consumers the information they need to better understand the true costs of air travel.

Transportation Department cracks down on airline 'junk fees'

"I believe this is to the benefit of the sector as a whole," Buttigieg said in an interview with NPR's Morning Edition , because passengers will have "more confidence in the aviation sector."

The new rules require airlines to disclose all baggage, change, and cancellation fees, and to share that information with third-party booking sites and travel agents.

The regulation also prohibits bait-and-switch tactics, the DOT says, that disguise the true cost of flights by advertising a low base fare that does not include all mandatory fees.

"This is really about making sure that we create a better experience for passengers, and a stronger aviation sector in the United States," Buttigieg said in the NPR interview.

You'll soon be able to get an automatic refund when your flight is delayed or canceled

  • Airlines must start providing passengers with automatic refunds when flights are delayed or canceled.
  • New regulations announced Wednesday mean passengers can also get automatic refunds on delayed baggage.
  • Previously, airlines set their own policies about when passengers were eligible for refunds.

Insider Today

Airlines are to be required to provide passengers with "prompt" automatic refunds when their flights are delayed or canceled under a new rule from the Department of Transportation, announced on Wednesday .

The regulations, which are being rolled out over the next six to 12 months, also entitle passengers to automatic refunds for delays to checked bags and for airlines' failure to provide paid-for extra services.

Under the DOT regulations, passengers can get a refund if their flight is canceled or significantly changed and they don't accept alternative transportation or travel credits offered. This includes domestic flights delayed by more than three hours and international flights delayed by more than six hours.

Significant changes that make passengers eligible for a refund include a change in the departure or arrival airport, an increase in the number of connections, and being downgraded to a lower traveling class. Passengers can also get a refund if they're switched to connections at different airports or flights on different planes that are less accessible for a person with a disability.

Previously, airlines set their own standards for which circumstances passengers could get a refund in, which could make it confusing for passengers trying to figure out whether they were eligible for a refund and how to apply, the DOT said in a press release.

It added that some airlines gave passengers a travel credit or voucher by default, meaning they couldn't use their refund to rebook on another airline "without navigating a cumbersome request process."

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Passengers are also entitled to a refund of their checked bag fee if their bag is delayed and they file a mishandled baggage report. The DOT says that the policy covers bags that aren't delivered within 12 hours of a domestic flight arriving at the gate, or 15 to 30 hours for an international flight, depending on the length of the flight.

And if passengers pay extra for a service such as WiFi, seat selection, or in-flight entertainment and then don't receive this, they're entitled to a refund for the fee they paid.

"The new rule makes it easy for passengers to obtain refunds when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased," the DOT said in a press release.

As well as being automatic, the refunds must be "prompt," which it describes as within seven business days for credit card purchases and 20 calendar days for other payment methods.

The refunds must be in whatever payment method the passenger originally used, whether cash, credit card, or airline miles, rather than substituting vouchers or travel credits unless the passenger accepts alternative compensation.  

The DOT also noted that airlines must provide a full refund, including all government-imposed taxes and fees and airline-imposed fees.

Many passengers have previously spoken to Business Insider about their troubles getting compensation for delayed and canceled flights and lost luggage. In 2020, when flights were canceled due to waves of COVID lockdowns, the DOT got more than 102,000 complaints from airline customers in total. Nearly 90,000 were related to refunds.

Travel chaos spiked in the summer of 2022 as vacationers returned to the skies after the pandemic canceled their plans during the two prior years. Summer travel this year is also expected to be significantly disrupted, with Boeing delaying some plane deliveries .

Watch: Thousands of bags pile up at US airports after flight cancellations

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It Will Soon Be Easier to Get Flight Refunds, Thanks to This New DOT Rule

F light delays and cancellations are some of the most un-fun issues to deal with while traveling. Even more of a headache? Trying to get a refund from the airline for your airfare or for any extra fees you paid for, like checked baggage.

But now, in a big win for travelers, the Department of Transportation is making it easier than ever to get a full refund for canceled or significantly delayed flights. On Wednesday, the DOT announced new federal rules on how—and when—airlines must give customers their money back. The new rules apply to flights to, from, or within the United States on foreign or domestic carriers, making them some of the most consumer-friendly regulations the industry has seen to date.

“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” Secretary of Transportation Pete Buttigieg said in a release on Wednesday. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

The new rule will go into effect 60 days after its official publication in the Federal Registrar (as of the time of publication, the final rule has not yet been published). Airlines will then have a grace period of six months to one year (depending on the type of refund) to implement the new policies.

Here’s a breakdown of the new rules and how they will impact passengers:

Refunds for significant flight changes and cancellations

Under the new rules, passengers are entitled to automatic refunds for flights that are canceled, significantly delayed, or experience a “significant change” for any reason—including “uncontrollable” factors such as weather. This applies only if alternative transportation or travel vouchers aren't available or are rejected by the passenger. That’s the key condition. If an airline is able to book you on another flight—on the same day or even the next—and you accept it, then the new rules don’t apply. But if you refuse the rebooking, then you are entitled to the automatic refund.

Additionally, the new rule defines what the DOT considers a “significant change” for the first time. Adjustments to a flight itinerary that meet any of the following criteria will be considered significantly changed—and therefore, entitled to a full refund:

  • Changes to departure or arrival times that are more than 3 hours domestically and 6 hours internationally
  • Departures or arrivals from a different airport
  • Increases in the number of connections
  • Instances where passengers are downgraded to a lower class of service
  • Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability

This is a major change—and a big deal for passenger rights—because previously, the government left it up to the airlines to choose for themselves what they considered a long enough delay to warrant a refund. (Meaning, they weren’t given often.)

In another win for travelers, the DOT has spelled out how refunds must be issued. The refunds must be automatically issued “without passengers having to explicitly request them or jump through hoops.” They must also be prompt, given within seven business days for credit card purchases and 20 calendar days for other methods of payment. The refunds must equal the full amount a customer paid, including taxes and fees, minus any used portion of the ticket.

Refunds for late luggage

But it’s not just flight disruptions that are eligible for refunds under the new rules. It applies to baggage delays, too. Fliers who file a mishandled baggage report with the airline and whose delayed luggage isn’t delivered to them within 12 hours of their domestic flight or 15 to 30 hours of their international flight (depending on the flight’s length) can receive a full refund of their baggage fee. And those fees can add up—as travelers are well aware—especially in light of this year's widespread checked bag fee increases.

Refunds for in-flight services

Passengers are also now entitled to automatic refunds for in-flight services they paid for but the airline failed to provide. These charges include services like seat selection , in-flight WiFi , and in-flight entertainment purchases. If you pay for one of these add-ons and it’s not provided (for example, if the WiFi doesn’t work, or you don't get the seat you paid for) you will be refunded for those services.

Refunds for when you're sick

The new regulations also lay out a framework for travelers to be protected if they can’t travel due to “a serious communicable disease” such as COVID-19. If a country or medical professional advises passengers not to travel to, from, or within the US for this reason, airline customers will be entitled to a travel voucher or airline credit that’s valid for at least five years. Unlike the above refund scenarios, airlines may require passengers to submit additional documentation in order to receive this compensation.

These protections are designed to prevent issues that arose during the pandemic from repeating themselves. In 2020, many passengers whose flights were canceled due to travel restrictions struggled to get a cash refund from their airline. Airlines were later collectively fined $7.5 million by the DOT for delaying the refunds and forced to issue $600 million back to customers.

What else to know

Overall, the new rule is meant to streamline the refund process for all of these services and flight disruptions. “Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund—searching through airline websites to figure out how [to] make the request, filling out extra ‘digital paperwork,’ or at times waiting for hours on the phone,” the DOT’s statement says.

On top of this, airlines must now issue notifications to fliers who are affected by delays and cancellations that state their right to a refund of their ticket price and extra service fees.

If travelers believe their airline is not following the new refund rules, they can always file a consumer complaint with the DOT . These complaints helped fuel the record amount of passenger refunds during the COVID pandemic, as well as the $164 million in penalties that Buttigieg has charged against airlines for consumer violations during his tenure. So rest assured that the agency does read them and act on them.

It Will Soon Be Easier to Get Flight Refunds, Thanks to This New DOT Rule

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The Dept. Of Transportation Lays Out Exactly When an Airline Owes You a Refund

The rule comes amid the DOT's continued effort to advocate for passengers.

dot travel refund

Elijah Nouvelage/Getty Images

The Department of Transportation (DOT) issued new rules Wednesday requiring airlines to disclose all fees upfront as well as “promptly” provide refunds when they are owed. Under the new rule, travelers are entitled to a refund if an airline cancels or significantly changes their flight, like changing the departure or arrival time by more than 3 hours for domestic flights and 6 hours for international flights, the DOT shared with Travel + Leisure . Travelers can also demand a refund if an airline significantly delays their checked bags (more than 12 hours for domestic flights and 15 to 30 hours for international flights), or if the airline doesn’t provide the ancillary services a passenger purchased like Wi-Fi, seat selection, and in-flight entertainment. Airlines will now be required to issue a refund automatically without a passenger having to request one. The refund must be in the form of cash or the original form of payment, and airlines cannot substitute travel vouchers or other forms of compensation unless the passenger willingly accepts it.

The new rules are part of the DOT’s ongoing effort to expand airline passenger rights and address so-called “junk fees.” They also spell out when travelers are owed a refund, taking it out of the airlines’ hands and making the policy the same for every carrier,

“Passengers deserve to get their money back when an airline owes them - without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement shared with T+L. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”

When it comes to surprise fees, the DOT will require airlines to tell travelers up front what they charge for a first or second checked bag , a carry-on bag, or for canceling or changing a reservation . The fees cannot be displayed through a hyperlink.

Buttigieg said the new rule “will save passengers over half a billion dollars a year in unnecessary or unexpected fees by holding airlines accountable for being transparent with their customers.”

The new rule does not address family seating fees, but the DOT said it plans to propose a separate rule tackling that. Last year, the DOT launched an online family seating dashboard laying out the policies of 10 major U.S. airlines.

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New DOT Rule Requires Airlines to Issue Refunds Quickly

The department of transportation also targets ‘junk fees’ in latest guidance.

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Nicole Gill Council,

The U.S. Department of Transportation (DOT) issued a rule Wednesday that requires airlines to automatically provide passengers with cash refunds when they are owed and to better disclose fees, sometimes called surprise or “junk” fees , during the ticketing process.

“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them — without having to ask,” U.S. Transportation Secretary Pete Buttigieg said in a statement, adding that airlines will be required to reveal costs before a ticket is purchased. The secretary said the new rule will save passengers time and money.

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In addition, the rule codifies what is considered a “significant change.” Under current regulations, airlines decide how long a delay must last before triggering refunds. According to the DOT’s rule, significant changes to a flight include departure or arrival times that exceed three hours for domestic travel and six hours for international travel; departures or arrivals from a different airport; passengers downgraded to a lower class; an increase in the number of connections; connections at different airports; or trips on planes that are less accessible for a person with a disability.

Airlines still will be allowed to offer another flight or a travel credit instead of a refund, but consumers can reject the offer.

The rule will also apply to refunds of checked-bag fees if the bag isn’t delivered within 12 hours for domestic flights or 15 to 30 hours for international flights for passengers who submit a mishandled baggage report. And it will apply to fees for things such as seat selection or an internet connection if the airline fails to provide the service.

The DOT requires refunds to be:

  • Automatic: Passengers shouldn’t have to ask for a refund or fill out paperwork.
  • Prompt: Refunds must be issued within seven business days for credit card purchases and 20 calendar days for other payments.
  • Cash or the original form of payment.
  • The full amount, including all taxes and fees.

Complaints about refunds skyrocketed during the COVID-19 pandemic as airlines canceled flights . Even when they didn’t, many people didn’t feel safe sharing a plane cabin with other passengers. Flights were also canceled as more passengers returned to the skies after the pandemic.

In a statement, a spokesperson for Airlines for America, a lobbying organization for major airlines, said members offer a range of options — including fully refundable fares. The organization said that from January 2020 to December 2023, the 11 largest U.S. passenger airlines issued customer refunds in the amount of $43 billion.

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As for the surprise fees, the rule requires airlines and travel agents to disclose at the outset the costs for a carry-on bag, checked bags, changing a reservation or canceling one.

The DOT said the rule will save consumers more than $500 million a year.

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In a letter last year, AARP called on DOT to quickly finalize and strengthen a rule on hidden airline fees, such as those assessed for changing or canceling a flight, seating a young child next to an accompanying adult or checking additional luggage.

“AARP applauds the DOT’s decision to protect airline passengers, many of whom are older adults, from numerous hidden fees,” says Debra Alvarez, AARP’s government affairs director for livable communities. “AARP has a long history of advocating for affordable, reliable transportation options. As more families take advantage of the upcoming travel season, it’s good to know they will be able to make informed decisions about how to allocate their travel budgets without being charged unexpected and unfair airline fees.”

The new rules will take effect over the next two years.

This isn’t the first rule targeting airlines this year. In February, DOT proposed improving the flying experience for passengers who use wheelchairs .

Contributing: The Associated Press

Nicole Gill Council is a writer and editor of travel and diversity, equity and inclusion content for aarp.org. Previously, she was a digital planning manager and a news editor at  USA Today  and Gannett News Service, and a copy editor at the  Los Angeles Times  and  Newsday.​

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After long delays, DOT enforces six airlines to pay $600 million in refunds to travelers

dot travel refund

Air travelers who have been waiting a while on refunds from their airline are now getting what they are owed.

On Monday, the U.S. Department of Transportation  announced  it took "historic enforcement actions" against six airlines to pay back $600 million in fines to hundreds of thousands of people who are owed flight cancellation refunds.  

Airlines are required by the DOT to provide a refund to customers if their flights are canceled for any reason, even if the ticket was bought as nonrefundable. Refunds also need to include any additional fees like a baggage fee or seat assignment. 

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The agency said it has received "a flood of complaints" from fliers who didn't receive "timely refunds" after canceled or significantly changed flights since the pandemic first impacted air travel in 2020. 

“When a flight gets canceled, passengers seeking refunds should be paid back promptly. Whenever that doesn’t happen, we will act to hold airlines accountable on behalf of American travelers and get passengers their money back.” U.S. Transportation Secretary Pete Buttigieg said in a news release. “A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund.” 

According to Frontier Airlines spokesperson Jennifer De LA Cruz, the U.S. carrier has already been issuing refunds to customers. "Frontier Airlines has issued over $92 million in refunds and redeemed credits and vouchers to customers who voluntarily canceled their non-refundable tickets during the pandemic and were not entitled to a refund under U.S. law," she said in an emailed statement.

Besides the refunds, the agency said it's also assessing over $7.25 million in civil penalties against six airlines for the "extreme delays" in completing the refunds. This makes a total of $8.1 million in civil penalties for 2022, the largest amount ever issued by the agency's Office of Aviation Consumer Protection in a single year.

The agency said it expects to make more assessments through the end of the year. 

Below are the fines assessed on Monday:

  • Frontier – $222 million in required refunds paid and a $2.2 million penalty 
  • Air India – $121.5 million in required refunds paid and a $1.4 million penalty 
  • TAP Portugal – $126.5 million in required refunds paid and a $1.1 million penalty 
  • Aeromexico – $13.6 million in required refunds paid and a $900,000 penalty 
  • El Al – $61.9 million in required refunds paid and a $900,000 penalty 
  • Avianca – $76.8 million in required refunds paid and a $750,000 penalty 

Frontier Airlines was the only domestic carrier in the group of six fined on Monday, which was an oversight to some who felt  other larger U.S. airlines should also be held accountable.

"Airlines that brazenly skirt the rules deserve to be fined, but this latest round of enforcement from the USDOT comes almost three years too late and leaves out the most egregious U.S. offenders,” William J. McGee, senior fellow for aviation and travel at the American Economic Liberties Project said in a statement emailed to USA TODAY. “Frontier’s decision to withhold valid refunds was egregious and deserves punishment. So too does the ongoing abuse of passengers by American, Delta, and United, whose market share dwarfs Frontier’s."

McGee added: "The DOT must address widespread flight disruptions amid soaring airfares, and restore confidence in flying ahead of this holiday season – or we all risk a repeat of the summer’s flight debacles." 

In June 2022, which was a hectic and stressful summer of travel, Delta and United were the two airlines with the highest number of cancellations . At the time, a spokesperson for Delta said poor weather and staffing shortages were behind the cancellations.

Delta announced in August that it refunded over $6 billion, or over 11 million tickets, to customers since the beginning of 2020. 

Over this past year, the DOT has taken steps to protect air passengers and make airline policies more transparent. At the end of summer, the agency launched an interactive dashboard to make it accessible for people to see what they are owed by 10 major domestic airlines for various flight disruptions. Since its implementation, nine out of the 10 airlines now offer meals and hotels to passengers whose flights are canceled or delayed due to an issue by the airline. 

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Air Travel Complaints

Obtaining assistance to resolve air travel  complaints.

Air Travelers Have Rights. Federal laws protect airline passengers by specifying airlines’ obligations, including when a flight is oversold, luggage is mishandled, a flight is delayed on the tarmac, and refunds are requested.  Federal laws also prohibit airlines from discriminating against an air traveler on the basis of his or her disability, race, color, national origin, religion, sex, or ancestry.

DOT’s aviation consumer protection website provides information on key topics of interest to air travelers organized by topic.  For additional convenience, DOT maintains a “Fly Rights” guide , as an easy to use reference for air travelers.  

Air Travel Issues.

Airline Safety: For information on reporting an airline safety issue visit the Federal Aviation Administration’s Hotline webpage here . 

Aviation Security: For concerns about aviation security call the Transportation Security Administration (TSA) toll-free at 1-866-289-9673 or email TSA.  For additional information, visit the TSA website .

Non-safety or security air service related issues: For the fastest resolution of many air service related issues, contact an Airline or Ticket Agents’ Customer Service Representative.  You may also contact DOT's Office of Aviation Consumer Protection.

Disability-Related Air Travel Issues.

If you encounter a disability-related issue about an airline accommodation or service, ask to speak to the airline’s Complaint Resolution Official (CRO).  A CRO is the airline’s expert in disability related issues in air travel and has the authority to resolve complaints on behalf of the airline.

Air travelers who experience disability-related problems may also call DOT’s toll-free hotline for air travelers with disabilities 1-800-778-4838* to obtain assistance.  The hotline will provide general information about the rights of air travelers with disabilities, respond to requests for printed consumer information, and assist air travelers with disabilities with time-sensitive disability-related issues.  The hours for the hotline are 9 a.m. to 5 p.m. Eastern time, Monday through Friday, except federal holidays.

Air travelers who believe their rights have been violated or are unable to resolve an issue to their satisfaction may file complaints with the airline, ticket agent and/or DOT.

Filing a complaint with an airline or a ticket agent.

  • DOT requires airlines to acknowledge consumer complaints within 30 days of receiving them and to send consumers written responses addressing these complaints within 60 days of receiving them (30 days for disability-related complaints).
  • DOT also asks that ticket agents respond to consumer who file complaints with them.
  • DOT requires airlines that fly to, from, or within the United States to state on their websites how and where complaints can be submitted.  There may be a form on the airline’s website for this purpose.  Often, you may also email or write to the airline or ticket agent’s consumer office at its headquarters.

Filing a complaint or comment with DOT.

  • Use this online form to send a complaint or comment to DOT about an air travel consumer or civil rights (including disability) related issue or experience.
  • When mailing a letter, please include your full address and phone number as well as complete and accurate information about your trip and the problem you had or are having.

Office of Aviation Consumer Protection  U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC  20590

  • You may contact DOT by phone at 202-366-2220 for information related to a consumer related problem.  However, for a case to be processed as a complaint, it must be submitted to DOT in writing.

Private legal action . You may be able to seek recourse through small claims court.   Click here for more information. 

DOT’s Consumer Complaint Process. 

For Disability and Discrimination Complaints

  • A Transportation Industry Analyst will forward your complaint to the airline and the airline is required to respond to you and DOT. 
  • Once the airline’s response is received, a DOT analyst will review your complaint and the airline’s response to determine if a violation occurred.  After the analyst reviews your case, it will be given to an attorney for review.  Once your case is reviewed by an attorney, an analysis with findings will be sent to you.  Please note that due to the volume of cases received, and the thoroughness of this process, it may take some time to fully process your case.

For All Other Complaints 

  • A Transportation Industry Analyst will forward your complaint to the airline or ticket agent. The airline or ticket agent will provide you a written response. The analyst will ask the airline and ticket agent to provide a copy of the response to DOT if it falls under one of the areas DOT's Office of Aviation Consumer Protection enforces.  The DOT analyst will then review the case to determine whether a violation occurred.  
  • If your complaint involves an air travel service issue, regardless of whether DOT's Office of Aviation Consumer Protection has enforcement authority in the area, it will be logged in its database and included in the total number of complaints that is reported in DOT's monthly Air Travel Consumer Report .  It will also help DOT spot trends in the airline industry and may be the basis for rulemaking action. 

Review of DOT Complaints.

  • DOT's Office of Aviation Consumer Protection intends to conduct a comprehensive review of air travel service complaints annually to determine the extent to which regulated entities are complying with the laws that it enforces and to track trends or spot areas of concern that may warrant further action.  This review may form the basis for investigations and possible enforcement action and regulatory actions.

Statistics on the number of complaints filed with DOT.

  • Every month, DOT publishes its Air Travel Consumer Report , which contains information about the number and type of air travel service complaints DOT receives about airlines and ticket agents.  This report is made available to the public so that consumers and air travel companies can compare the complaint records of individual airlines, ticket agents, and tour operators.
  • In addition to complaints, the report also contains statistics that the airlines file with us on flight delays, cancellations, bumping, mishandled baggage, and other helpful information.

* If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

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  2. DOT Form 560-024

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  3. NOTICE ON REGULAR TRAVEL TAX REFUND

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  1. Biden-Harris Administration Announces Final Rule Requiring Automatic

    At the height of the pandemic in 2020, refund complaints peaked at 87 percent of all air travel service complaints received by DOT. Refund problems continue to make up a substantial share of the complaints that DOT receives. DOT's Historic Record of Consumer Protection Under the Biden-Harris Administration

  2. Refunds

    Airlines and ticket agents are required to make refunds promptly. For airlines, "prompt" is defined as being within 7 business days if a passenger paid by credit card, and within 20 days if a passenger paid by cash or check. For ticket agents, prompt is not defined. This may be addressed in a future DOT rulemaking.

  3. What to Know About the New Rules on Airline Refunds and 'Junk' Fees

    The Transportation Department on Wednesday announced new rules taking aim at two of the most difficult and annoying issues in air travel: obtaining refunds and encountering surprise fees late in ...

  4. Airlines required to refund passengers for canceled, delayed flights

    The DOT rules lay out that passengers will be "entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered."

  5. Airlines must cough up cancellation cash and can no longer hide fees

    The rule from the Transportation Department says passengers who decline other reimbursement like travel credits are to get cash refunds. Travelers pass through Salt Lake City International Airport ...

  6. Airlines ordered to give full refunds instead of vouchers and stop

    But the DOT insists its new rule will give consumers the information they need to better understand the true costs of air travel. Business Transportation Department cracks down on airline 'junk fees'

  7. Biden administration finalizes rule establishing airline refund

    When the DOT initially proposed the refund rules in 2022, ... The final rule only puts the onus for providing a refund onto a travel agency if it is the merchant of record for the transaction ...

  8. Ticket Refunds

    Contact Us. Office of Aviation Consumer Protection. 1200 New Jersey Ave, SE Washington, DC 20590 United States. Phone: (202) 366-2220 Business Hours: 8:30am-5:00pm ET, M-F. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

  9. Airlines need to be upfront about fees and refund quicker, DOT says

    The Department of Transportation announced new rules for airline passengers to cut down on hidden fees and give straightforward refunds. ... Kathleen Wong is a travel reporter for USA TODAY based ...

  10. Airlines Will Now Give Automatic Refunds When Your Flight Is Delayed

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  11. It Will Soon Be Easier to Get Flight Refunds, Thanks to This New DOT Rule

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  12. The Dept. Of Transportation Lays Out Exactly When an Airline ...

    The Department of Transportation (DOT) issued new rules Wednesday requiring airlines to disclose all fees upfront as well as "promptly" provide refunds when they are owed.

  13. New DOT Rule Requires Airlines to Issue Refunds Quickly

    Under current regulations, airlines decide how long a delay must last before triggering refunds. According to the DOT's rule, significant changes to a flight include departure or arrival times that exceed three hours for domestic travel and six hours for international travel; departures or arrivals from a different airport; passengers ...

  14. New Biden administration rules require airlines to refund changed

    According to the department, complaints related to airlines and ticket agents rejecting or delaying refunds made up 87% of all air-travel service complaints at the height of the Covid-19 pandemic ...

  15. More Than $600 Million in Refunds Returned to Airline Passengers Under

    WASHINGTON - Today, the U.S. Department of Transportation (DOT) announced historic enforcement actions against six airlines, which collectively paid more than half a billion dollars to people who were owed a refund due to a canceled or significantly changed flight. These fines are part of DOT's ongoing work to ensure Americans receive the refunds they are owed from airlines.

  16. Transportation Department proposes new rules to make it easier for

    The US Department of Transportation has proposed changes to allow airline passengers to seek refunds under circumstances including major delays and Covid-19.. The department announced Wednesday ...

  17. DOT Announces Airline Ancillary Fee, Refund Rules

    The U.S. Department of Transportation on Wednesday issued two final rules related to airline refunds and ancillary fees, the agency announced. The refund rule sets the terms for when and how an airline is required to provide a refund. The ancillary fee rule requires airlines and ticket agents to ...

  18. Airlines Must Now Pay Automatic Refunds for Canceled Flights

    Airlines will now have to provide automatic refunds to travelers if flights are canceled or significantly altered under new US Department of Transportation rules, a significant change for ...

  19. DOT enforces six airlines to pay customers $600 million in refunds

    Air travelers who have been waiting a while on refunds from their airline are now getting what they are owed. On Monday, the U.S. Department of Transportation announced it took "historic ...

  20. As Part of Ongoing Airline Consumer Protections Efforts, USDOT

    WASHINGTON - Today, the U.S. Department of Transportation (Department) announced a proposed rule for public comment, which if adopted, would significantly strengthen protections for consumers seeking refunds for airline tickets. Since early 2020, the Department has received a flood of air travel service complaints from consumers with non-refundable tickets who did not travel because airlines ...

  21. DOT airline rules require these automatic flight refunds

    The DOT announced new rules that require airlines to provide automatic cash refunds for canceled or significantly delayed flights if travelers choose not to rebook.

  22. New Rules Will Force Airlines to Provide Refunds for Delayed, Canceled

    On Wednesday, the U.S. Department of Transportation issued new rules that will require airlines to provide an automatic refund, in full, in the event a flight is canceled or significantly delayed.

  23. Air Travel Complaints

    U.S. Department of Transportation. 1200 New Jersey Avenue, SE. Washington, DC 20590. You may contact DOT by phone at 202-366-2220 for information related to a consumer related problem. However, for a case to be processed as a complaint, it must be submitted to DOT in writing. Private legal action.