Airline Regulations Post-COVID-19: Refunds and Passenger Rights

When an airline cancels your flight, they owe you a full refund. Federal law provides a right to a full refund of your ticket for cancellations or significant delays of three or more hours for a domestic flight. Airlines offer rebooking or flight credit, which travelers can accept or reject in favor of a refund.

Airlines can make it difficult for you to enforce your air passenger rights. Many air travelers feel they must accept whatever the airlines offer. To understand more about your air travel consumer rights, talk to a local attorney.

Your Refund Rights When an Airline Cancels a Flight

Under federal law, airlines must provide a full and prompt refund for any canceled flight. The same policy applies to significant delays or changed flights where the consumer chooses not to accept the delayed flight, rebooking, or travel credit. Airlines must also notify consumers about their right to a refund for cancellations or significant delays.

This applies to consumers holding a nonrefundable ticket on a scheduled flight to, from, or within the U.S. Travelers can also get a refund when they pay for ancillary services, such as seat upgrades, in-flight meals, onboard Wi-Fi, or lounge access.

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What Is a Significant Airline Delay?

A significant delay is considered three or more hours from departure or arrival for domestic flights, and six or more hours for international travel. Significant changes also include adding a connection airport or an involuntary downgrade to a lower class of service.

Airlines may offer alternative transportation on a later flight or on a different airline, but it is not required by federal law. You can accept the alternative flight or reject the option and get a refund instead.

Notification Requirements for Delayed Flights

Federal law also requires airlines to provide notice within 30 minutes of becoming aware of a flight change, delay, or cancellation. Airlines may send an email, text message, or app notification to the passenger to inform them of any delays or cancellations.

However, the minimum notification policy only requires notice at the boarding gate area, on the airline website, or by phone when you call and ask.

How You Get Your Airfare Refund

As long as you don’t accept a rebooked flight or agree to stay on the delayed flight, you can get an automatic refund for a qualifying cancellation or significant delay.

The airline must automatically refund you for your fare within seven days for credit card purchases or 20 days for cash purchases.

General Airfare Refund and Accommodation Options

Airfare refund policies have changed significantly over the past few years. For example, the federal government mandated full refunds for cancellations during the COVID-19 pandemic. The U.S. Transportation Department (DOT) issued an order on April 3, 2020, for airlines to give full refunds — not just vouchers for future travel — for disruptions caused by the coronavirus pandemic.

Since then, airlines have modified their policies on schedule changes and cancellations. “Airlines want to cancel the rule requiring them to refund fares for canceled or delayed flights,” says Steve W. Berman, class action and mass torts lawyer at Hagens Berman Sobol Shapiro in Seattle. Berman filed a class-action suit against United Airlines for denying a refund request for canceled flights.

Consumer protection options for air travel changes depend on several factors, including:

• Specific airline policies
• Type of ticket or fare class
• Reason for the cancellation
• Insurance coverage
• Domestic or international flights

If you don’t fly because you missed your flight or decided not to go, and the flight departs as scheduled, you don’t automatically have the right to a refund. You can get a refund if you purchased a fully refundable ticket. You may also get your fare back for covered reasons by filing a claim under your travel insurance or credit card policy.

Do Airlines Have To Pay for Hotels or Meals for Overnight Delays?

Your rights regarding canceled flights depend on whether the cancellation is due to a reason within the airline’s control. Controlled delays include crew shortages and mechanical issues. Uncontrolled cancellations include those due to severe weather and air traffic control issues.

You have the right to a refund for the airline’s controllable and uncontrollable reasons. However, you may also get complimentary hotel accommodations and travel vouchers for overnight delays. Most major airlines commit to offering a hotel for controllable delays that require an overnight stay. Most airlines also offer a reasonable meal voucher for delayed flights.  

Refund and Compensation Rights for International Flights

Flyers may have additional consumer protection options for some international flights. Generally, flights to, from, or within other countries receive their country’s consumer protections.

For example, the European Union has stronger air passenger rights protections that apply to flights within the EU, operated by an EU airline, or airlines arriving in or departing from the EU, including U.S.-based airlines. For short-notice cancellations of flights longer than 3,500 km, you can receive 600 EUR in compensation.

Check your refund and compensation rights before booking your ticket to protect yourself in the event of a delay or cancellation.

Finding Legal Help

For legal advice about your options after canceled air travel, talk to an attorney with experience in airline and passenger rights issues.