Don’t Settle for Vouchers — New Rule Says Airlines Owe You Cash Refunds

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It seems like air travel has become more and more stressful and less enjoyable than ever. Long lines and crowded terminals seem to be all you hear about these days.
But this type of news should come as no surprise — the U.S. Department of Transportation reported that summer 2024 air travel volumes were the highest on record. The TSA screened 239.8 million people since Memorial Day weekend, which was an average of 2.7 million per day. If you’re one of these people, there’s one worst-case scenario you won’t want to find yourself in: your flight getting unexpectedly cancelled and offered nothing more than a travel voucher for your next trip.
However, thanks to a new rule passed by the federal government, this will no longer be the reality for airline passengers. Airlines are now going to be held accountable for severely disrupting their customer’s travel plans.
Airlines Must Now Refund Customers in Cash, Not Travel Vouchers
On April 24, 2024, the U.S. Department of Transportation under the Biden-Harris Administration issued a final rule requiring airlines to promptly provide passengers with automatic cash refunds when owed.
What does this change mean for you? You’ll now be easily able to obtain a cash refund when airlines cancel or significantly change their flights, fail to provide you with extra services you paid for, or significantly delay the arrival of checked bags.
Here’s when you’d be entitled to an automatic cash refund:
- When your flight is canceled, or if it’s delayed three hours or more domestically (or six hours or more internationally).
- If you aren’t provided an extra service that you paid for, including in-flight Wi-Fi, inflight entertainment or seat selection. In cases like these, you’d be entitled to a refund for the cost of the extra services.
- If your checked bag fee is not delivered within 12 hours of your domestic flight arriving at the gate, or 15-30 hours of your international flight arriving at the gate, depending on the length of the flight.
“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Thanks to the current federal government, U.S. airline customers now have more rights and protections than they had before.