§42305 Refunds for Cancelled or Significantly Delayed or Changed Flights

Summary

Airlines must give a full refund, including taxes and extra fees, for a nonrefundable ticket if a flight is canceled or is changed or delayed enough that the passenger chooses not to fly or refuses rebooking or a voucher. If the ticket was bought with a credit card, the airline must refund it within 7 business days. If it was paid with cash or another method, the refund must come within 20 days. A refund is treated as requested when the airline offers no alternative, when the passenger rejects the options, or when the passenger does not respond and the flight leaves or the voucher offer deadline passes. Airlines must update their systems to tell passengers about this refund right. Airlines may offer a voucher, credit, or other compensation instead of a refund only if the offer clearly shows the terms and clearly says the passenger can get a full refund. Any voucher offered must be usable for at least 5 years and the recipient must be told the expiration date. If a person says they have a disability (as defined in 14 C.F.R. 382.3), the expiration notice must be provided in an accessible electronic form on request. A “significantly delayed or changed flight” includes at least arrivals 3 or more hours late for domestic flights and 6 or more hours late for international flights. The Secretary of Transportation must make rules within 1 year to apply these refund rules to ticket agents and to require carriers to transfer funds to a ticket agent when the agent is responsible for the refund but does not have the passenger’s money. Refunds given by ticket agents must follow the same timing and voucher rules.