§42305 Refunds for Cancelled or Significantly Delayed or Changed Flights

Summary

Airlines must give a full refund, including taxes and extra fees, to a passenger with a nonrefundable ticket when a scheduled flight is canceled or is changed or delayed so much that the passenger chooses not to fly, accept rebooking, or take a voucher or credit. If the ticket was paid with a credit card, the refund must be given within 7 business days after the passenger asked for it. If the ticket was paid with cash or another method, the refund must be given within 20 days after the passenger asked. An airline may offer a voucher or credit instead of a refund only if it clearly explains the offer and tells the passenger they still have the right to a full refund. Any voucher or credit must be usable for at least 5 years and the issuer must tell the passenger the expiration date. If a passenger says they have a disability, the expiration notice must be sent in an accessible electronic format. A “significant” delay means arriving 3 or more hours late for domestic flights or 6 or more hours late for international flights. The Secretary must make rules within 1 year so ticket agents also follow these refund rules, and airlines must quickly give money to an agent if the agent is responsible for the refund but does not have the passenger’s funds. A refund request counts when the airline offers nothing, when the passenger rejects the offer, or when the passenger does not respond and the flight departs. Airlines must update their passenger notices so people know when they are owed a refund.