At least one aspect of traveling by plane just got a whole lot easier, thanks to a brand-new rule from the Department of Transportation
Delayed Flight or Lost Luggage? You’ll Finally Get That Refund—Here’s How
Updated on Oct. 30, 2024
Sometimes the best-laid plans for a memorable vacation turn into a headache travelers would rather forget because of unanticipated flight delays or lost luggage—sometimes both! (Ah, the joys of air travel.) While passengers are legally entitled to refunds or compensation, the process of getting said refunds isn’t easy, to say the least. But a brand-new rule from the U.S. Department of Transportation (DOT), which went into effect on Oct. 28, is about to change that.
“Passengers deserve to get their money back when an airline owes them—without headaches or haggling,” U.S. Transportation Secretary Pete Buttigieg said in an April 2024 statement announcing the rule that promises to “sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
So what does this much-anticipated rule mean for you, and how can you get that refund for lost luggage or a delayed or canceled flight without headaches and hassles? We have all the details below so you can truly relax on your next trip, no matter what goes wrong en route to your destination.
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Why are flights usually delayed or canceled?
The Federal Aviation Administration (FAA) handles, on average, 45,000 flights carrying 2.9 million passengers into and out of U.S. airports every day. With such an astronomical number of travelers traversing the country, issues are inevitable, both those in an airline’s control and those that are not.
Issues within an airline’s control commonly include crew or maintenance employees who have exceeded strict work limits and therefore can’t work; lack of staff on flights due to illnesses or absences; sick passengers; and operational issues related to aircraft cleaning, fueling and baggage handling. Other reasons for delayed or canceled flights may include unforeseen weather events, mechanical or maintenance issues with aircraft, computer glitches and security-related issues.
What is the new DOT rule?
Passengers previously had to navigate notoriously confusing and vague guidelines to get refund requests off the ground. The new DOT rule takes the burden off passengers and operates under one simple mantra: Consumers are entitled to refunds in the case of a “significant change” to a flight. That can include excessive delays or cancellations (for any reason), checked-baggage delays and disruption of extra services purchased.
Prior to the reformed refund rules, airlines were given wide latitude on when or even if they would issue a refund to their customers who encountered disrupted air travel, creating a tangle of rules across the industry and resulting in some very frustrated passengers. Now, the refund is guaranteed and—even better—automatically processed.
What qualifies as a “significant” problem under the DOT’s new rule?
Of course, “significant” can mean very different things to an airline and a passenger. Here’s how the DOT defines that term, with specific cutoff times, itinerary changes and other nuances:
- A delay in a flight’s scheduled departure or arrival times, defined as more than three hours for a domestic flight or six hours for an international one.
- Passengers arriving at or leaving from an airport that is different than their original itinerary.
- The number of connections a passenger was supposed to have increases.
- A passenger’s class of service is downgraded.
- A person with a disability must connect at an alternative airport or take a different plane that is less accommodating or accessible than the original.
The only critical caveat to receiving an automatic refund in any of the above instances is that a passenger must not accept an airline’s offer of travel credits for the inconvenience or alternative transportation options.
What are the new DOT rules for lost or delayed luggage?
Passengers can now also receive a refund of their checked-bag fee when filing a mishandled baggage report in two instances. On domestic flights, luggage must be delivered within 12 hours of the plane reaching the gate or else the refund rule goes into effect. For international travelers, depending on the length of the flight, luggage must be delivered within a 15- to 30-hour time limit upon the plane’s gate arrival.
What will happen when an airline doesn’t provide extra services already purchased?
It’s really irritating when you pay for internet on a long flight only to have the service go down. The new rules make it clear that airlines must refund payments made by passengers who do not receive any extra service they paid for, from Wi-Fi access to seat selection.
How can you make a claim and get your refund?
The best part of the new DOT rules surrounding delayed or canceled flights and lost luggage is that getting a refund is automatic, so you won’t have to navigate endless calls to customer service or complete reams of paperwork. Plus, inconvenienced passengers won’t have to wait months for money that could be better spent on a do-over vacation. Airlines and ticket agents will have only a short window to refund the original form of payment: seven business days for credit cards, or 20 calendar days for other methods.
Under the new rule, carriers also won’t have wiggle room to finagle better terms in their favor. According to the agency, airlines and ticket agents cannot “substitute vouchers, travel credits or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.” They must also “provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used,” including “all government-imposed taxes and fees and airline-imposed fees.”
Making the process even more transparent, the rule also requires airlines to notify consumers who are entitled to refunds due to significantly changed flights as well as qualifying baggage or extra service issues. Yep, you read that right—it’s on them to make this all happen, not you. Because of the simplified rules, next time your flight veers off course for any qualifying reasons, at least you’ll know your refund’s already on its way.
Why trust us
Reader’s Digest has published hundreds of travel stories that help readers explore the world safely, easily and affordably. We regularly cover topics such as the best places to visit (and the best times to visit them), tips and tricks to zoom through airport security, flight-attendant secrets, hotel-room hacks and more. We’re committed to producing high-quality content by writers with expertise and experience in their field in consultation with relevant, qualified experts. We rely on reputable primary sources, including government and professional organizations and academic institutions as well as our writers’ personal experiences where appropriate. For this piece on getting a refund for a delayed or canceled flight and lost luggage, Aaron Rasmussen tapped his experience as a longtime travel writer and travel guidebook editor to ensure that all information is accurate and offers the best possible advice to readers. Read more about our team, our contributors and our editorial policies.
Sources:
- U.S. Department of Transportation: “Biden-Harris Administration Announces Final Rule Requiring Automatic Refunds of Airline Tickets and Ancillary Service Fees”
- Federal Aviation Administration: “Air Traffic by the Numbers”
- The Points Guy: “New airline refund rules are in effect—here’s what you should know”
