The United States Department of Transportation (DOT) has implemented a landmark regulation requiring all US airlines to provide passengers with prompt cash refunds for significant delays, cancellations, or major itinerary changes—regardless of the underlying reason.
Under these comprehensive new rules, airlines must return funds directly to the original form of payment, eliminating the previous practice of offering only travel credits or vouchers. This applies no matter the cause—whether operational, weather-related, or any other disruption.
Travelers are eligible for a refund if a domestic flight is delayed by three hours or more, or if international flights are delayed by six hours or longer.
Additional qualifying scenarios include changes to departure or arrival airports, the addition of unexpected stopovers or connections, and failure to deliver prepaid amenities such as onboard Wi-Fi. If checked baggage is delayed by more than 12 hours on US flights, or over 30 hours internationally, passengers are also entitled to a refund of those specific ancillary fees.
The DOT estimates these measures could return over USD 500 million (EUR 465 million) annually to travelers’ pockets. Implementation is being phased in throughout 2025, giving airlines time to update their systems and customer service protocols.
For comparison, the UK’s UK261 and the European Union’s EU261 regulations guarantee compensation between EUR 250 and EUR 610 for delays or cancellations, based on flight distance and delay length. These laws also account for notification periods and exclude extraordinary circumstances, such as extreme weather, from compensation requirements.
Passengers on a single reservation who miss onward connections due to delays may also claim compensation or, in qualifying cases, a full refund of the ticket price—though exceptions remain for events outside the airline’s control.
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