DOT scraps flight delay refund rule. What it means for you
Southwest limits refunds for plus-size travelers purchasing two seats
Southwest airlines is changing its “customers of size” policy, limiting refunds for extra seats under new conditions for plus-size travelers.
- The U.S. Department of Transportation has withdrawn a proposed rule that would have required cash compensation for significantly delayed flights.
- Airlines are still required to offer refunds for cancellations.
- Compensation for delays now depends on individual airline policies.
Air travelers seem to have a growing list of worries about flying.
Concerns from severe weather to tech glitches and aircraft issues can significantly delay flights. And the cost of airfare continues increasing.
And now, rules concerning consumer protections for air travelers are changing. Most notably, on Sept. 4, the U.S. Department of Transportation rescinded a proposed rule requiring cash refunds for delayed flights.
It also scrapped a rule forcing the disclosure of service fees such as baggage fees and change fees alongside airfares, a rule that was previously blocked by an appeals court.
“Passenger rights in the U.S. are at a tipping point,” said Tomasz Pawliszyn, CEO of the passenger rights-focused claims management company AirHelp. “Major progress was made in the last couple years towards protecting passengers, and still has a long way to go to match passenger protections in other parts of the world. To revert back now will hinder the air travel experience and leave millions of travelers without adequate compensation in the event of a disruption.”
Here’s what experts say flyers should know about their rights to a refund for delayed flights.
Airline group supports DOT actions
Airlines For America, a trade group representing U.S. airlines, supports the DOT decision to rescind the refund rule for delayed flights. It described the rule in statements as federal overreach.
“We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers,” the group said in a statement to The Arizona Republic. “We look forward to working with DOT on implementing President (Donald) Trump’s deregulatory agenda.”
What rights do passengers have when a flight is canceled or delayed?
Passengers have the right to a refund if their flight is canceled or significantly changed. These rights were granted in the 2024 FAA Reauthorization passed by Congress, Pawliszyn said.
“These cannot be overturned by the DOT,” he said.
Generally, when a flight is canceled or delayed, airlines must rebook passengers on the next available flight at no additional cost. Passengers also have the option of receiving a refund for the unused portion of their ticket if they choose not to travel.
Travelers should be aware that DOT regulations don’t require airlines to provide meals, accommodations or additional compensation for delays or cancellations resulting from severe weather, and that any assistance airlines offer is at their discretion, Pawliszyn said.
The DOT’s recent actions also don’t affect passengers’ right to compensation if an airline overbooks their flight, or sells more seats than they have available on the aircraft, Pawliszyn said. Federal law states that airlines must pay up to $1,350 to passengers who are bumped from an overbooked flight.
Passengers whose flights are delayed on the tarmac while the plane is awaiting takeoff have rights, too. Any tarmac delay of two hours or more requires airlines to provide passengers with food, water, operational restrooms and medical care if needed, he said. Passengers must also be given the option to exit the plane after a tarmac delay of three hours in the U.S. and four hours outside of the U.S., though some safety and security exceptions apply.
Do you get a refund if your flight is delayed?
The scrapped DOT rule, which hadn’t yet taken effect, would have required additional compensation — not just a refund — to passengers whose flights were significantly delayed. It would have required airlines to pay passengers from $200 to $775 to cover meals, lodging and rebooking assistance.
Without government-mandated refund rules, whether passengers are compensated for a flight delay remains dependent on the policy of their airline, said Suzanne Morrow, CEO of the travel insurance comparison website InsureMyTrip.
“Some airlines have better refund/compensation policies than others,” Morrow said. “It’s important for travelers to know what their airline’s policy is, and what they are owed if a delay does impact their travel.”
Besides checking their airline’s policies for compensation when a flight delay occurs, she also advises travelers to keep all receipts and documentation for expenses related to a delay.
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Is it worth buying travel insurance?
As the risk of flight disruptions becomes more likely for travelers, some may consider travel insurance in case their plans are affected.
One reason why travel insurance is worth considering is that if a traveler misses a night at a resort or a cruise departure because of a flight delay, the airline will not refund the money because they don’t provide compensation beyond fares when a flight is delayed, Morrow said.
In contrast, comprehensive travel insurance plans cover all prepaid, nonrefundable trip costs, she said.
When considering travel insurance, people should look for policies that cover not only unexpected flight disruptions, but also unexpected illness and injury. Many Americans might not realize that their domestic health insurance plans will not cover medical bills when traveling abroad, Morrow said.
“If you’re hospitalized overseas, that would be an out-of-pocket cost without travel insurance,” she said.
Travel insurance will not cover everything, but some policies include an optional, add-on benefit called Cancel For Any Reason, where people who cancel their trips can receive 50% to 75% reimbursement for prepaid, nonrefundable trip costs, Morrow said. Travelers must qualify for the benefit to receive it.
Michael Salerno is an award-winning journalist who’s covered travel and tourism since 2014. His work as The Arizona Republic’s consumer travel reporter aims to help readers navigate the stresses of traveling and get the best value for their money on their vacations. He can be reached at [email protected].
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