Starting this October, airlines will be required to automatically refund passengers for flights that are delayed, canceled, or significantly changed. The new rule, announced in late April 2024, will establish a single, clear outcome for disruptions—and help support a better passenger experience going forward.
Here’s a closer look at the new rule, what it covers, plus what else travelers can do to recoup or save money when travel planning.
What is the Department of Transportation’s new rule for airlines?
On April 24, 2024, the Biden-Harris Administration announced that the U.S. Department of Transportation (DOT) issued a new rule requiring airlines to automatically provide passengers with cash refunds when owed.
According to the new rule, passengers are entitled to a refund when:
- Flights are canceled or significantly changed. According to the DOT, “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. … Significant changes to a flight include 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; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.”
- Checked bag return is significantly delayed. The new rule states: “Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.”
- Extra services are not provided: Per the new rule, passengers will be entitled to a refund when the fee they paid for an extra service (think: seat selection or in-flight Wi-Fi) fails to be provided by the airline.
Gone are the days of navigating myriad airlines’ policies regarding delays, cancellations, or service interruptions. This new rule establishes a single source of truth all airlines must adhere to; refunds must be automatic and they must be in cash (or original form of payment). Vouchers or travel credits will only be acceptable if the passenger says so.
As for timing, airlines “must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.” The new ruling goes into effect in waves; the first is for airlines to provide automatic refunds when owed starting in October 2024.
What else can travelers do to recoup or save money on travel?
Here are some other ways travelers can be savvy with their travel budgets:
1. Avoid junk fees
Junk fees—unexpected or sometimes hidden fees that inflate the final cost of what you thought you were paying for a product or service—are often tacked on at the end of the purchasing process, resulting in a significantly higher amount than what was advertised up front.
Many airlines charge passengers for “extras,” such as advanced seat assignment, checking a bag, or baggage that exceeds the weight limit. Some carriers also charge for printing boarding passes, carry-on luggage, and in-flight amenities (such as food and drink).
Junk fees can also be included in the final price of accommodations—but not always in the upfront price tag. For example, hotels sometimes charge guests a daily resort fee (made known upon check-in). Likewise, vacation rentals might tack on extra charges, like cleaning fees or service charges, that drive the original price of your stay skyward.
The DOT also announced a new rule to help protect airline passengers from surprise junk fees when purchasing a ticket. The rule likewise goes into effect this October.
Get the guide: Junk Fees: What They Are and How to Avoid Them on Your Next Trip
Until then, spot and avoid junk fees ahead of your next trip by always reading the fine print, only booking with providers who display upfront costs, comparing prices, and more. Our guide can help.
2. Take advantage of TripIt’s money-saving features
Flight prices fluctuate—even after you book. With Fare Tracker, TripIt Pro monitors your itinerary for ongoing changes in your flight price. If your airfare price drops after you book, TripIt will send you an alert, notifying you that a potential airline credit or refund is available to get money back on your flight.
Read more: How to Save Money on Travel With TripIt
Even if you don’t have TripIt Pro (hint: you can try it free for 30 days), TripIt automatically monitors your flights and—if you experience a flight disruption while on a trip to, from, or within Europe (EU) or Brazil—will alert you if your flight is eligible for compensation.
You’ll receive an email explaining how to file a claim through AirHelp. Once your claim is filed, AirHelp does the rest of the hard work for you, including the paperwork and communication with the airlines—helping you claim compensation for your inconvenience.
3. Listen to the experts
“Set flight alerts and subscribe to newsletters that send you cheap flight deals,” said Raimee Iacofano, travel expert and digital content creator. “And always try to offset the cost of flights with credit card points or airline miles. They’re a great way to bring costs down if you can’t catch a good deal.”
Nicole Phillip, social media strategist and content creator, recommends bundling your destinations. “I’m always on the lookout for where else I can go to get the most bang for my buck,” she said. “When I was in Spain, I found an affordable flight to Morocco—and that’s how I ended up in Marrakech.”
And for Kendyl Grender, budget-travel hacking coach, it’s all about flexibility: “If you want to save on travel, you have to be flexible on your dates, destinations, and sometimes even the airports you fly in and out of. I follow the deals and not the destinations when it comes to travel. Many a cheap fare has brought me somewhere I would never have visited otherwise.”
