Air Passenger Rights in the U.S. Just Got Way Better. Here’s What to Know

Better air travel experiences are on the horizon for U.S. passengers thanks to the Department of Transportation’s new rules.

W

hen Michael Spanel booked his family’s summer vacation last year, the American Airlines flights he snagged to Greece were ideal. The Spanels would fly from Richmond International Airport to Athens, Greece, with just one short connection through Philadelphia.

At least, that was the plan.

Imagine his surprise when, several weeks later, Spanel checked their seat assignments and saw a significantly different itinerary from the one he had booked. The new itinerary was a bizarre patchwork of flights that required ground transfers between two unconnected airports.

Without informing the family, American Airlines had canceled their flight from Richmond to Philadelphia. In its place was a flight to New York City’s LaGuardia. Next, the Spanels had been booked on a flight to Athens–from JFK International Airport. For those unfamiliar with the area, those two airports are separated by 11 miles of some of the United States’ most congested roadways.

There was no guidance from the airline about how the family and their luggage should make that complicated transfer. They were on their own for that part of the journey as far as American Airlines was concerned.

The absurd itinerary is certainly not one any traveler would willingly choose for themselves.

Is Your Change ‘Significant’?

Things got worse when Spanel called American Airlines to cancel the surprise cockamamie itinerary. He intended to rebook his family’s flights to Greece with another airline with a less circuitous path.

The American Airlines agent processed the cancellation as Spanel asked, but then issued an $8,171 future flight credit instead of a refund.

Despite Spanel’s repeated requests for his money back, American Airlines insisted the new itinerary didn’t qualify for a cancellation with a refund. The airline had determined that the family’s schedule change with its multiple airports, complicated transfers, and an over four-hour delay to the final destination wasn’t “significant.”

American Airlines could make that decision because, until recently, the Department of Transportation (DOT) allowed airlines to self-identify what they considered “significant” regarding schedule changes, cancellations, and flight delays.

But there’s good news: what happened to Spanel and his family won’t happen to you. The new automatic refund rules implemented by the Department of Transportation in October will, among other things, prevent airlines from forcing passengers to accept wacky schedule changes and flight credits in lieu of cash refunds after a canceled flight.

Here’s what you need to know about the new air passenger rights in the United States.

Automatic Refunds for Significantly Changed Flight Schedules

As a consumer reporter and travel ombudsman, I mediate hundreds of complaints each year on behalf of passengers impacted by flight cancellations, schedule changes, and flight delays. A large number of these cases could easily be resolved if there were a standardized definition across the airline industry as to what the word “significant changes” means.

One thing is for sure: historically there has been a wide chasm between what the airlines define as significant and what passengers consider it to be.

But that’s changing. As of October 28, 2024, the Department of Transportation is regulating and defining what exactly is a “significant change” in terms of a flight alteration.

Travelers are eligible for a cancellation and automatic refund under all of these conditions. That refund must be processed back to the original form of payment within seven business days.

– The departure or arrival time of a domestic flight changes by three hours or more.
– On an international itinerary, the arrival or departure time shifts by at least six hours.
– The airline changes the departure city or the final destination airport.
– The number of connections in the passenger’s itinerary increases.
– A downgrade to a different class of service is required for the traveler to remain on the flight.
– If a passenger with a disability is the traveler and the airline attempts to add connections through cities that aren’t easily navigated.

Note: If an airline passenger willingly accepts the itinerary switch, no further compensation is owed.

Cancellations by the Airline

Despite what the airlines would have travelers believe, when a carrier cancels a flight for any reason, it owes the passengers a refund. Of course, that presumes that the customer wants a refund. The other option is for the airline to rebook the passenger on the next available flight on their fleet.

It’s important to note that sometimes when an airline cancels a passenger’s flight, its system will automatically create a new itinerary for the customer. As was the case of the Spanel family, the new flight sequences these programs create are often undesirable.

The new DOT rules make it clear that passengers are not required to accept auto-generated replacement flights that wildly deviate from the original plan. If the airline cancels your flight, it owes you a refund or a replacement of your choosing.

Refunds for Baggage Fees

Another win for passengers in this new era of air travel is the requirement for airlines to promptly refund baggage fees when a checked bag goes missing and doesn’t reappear within 12 hours after a domestic flight. The refund rules for missing luggage internationally begin at 15 hours, but depending on the length of the flight, a passenger may not qualify for the baggage fee refund until the 30-hour mark.

Refunds for Purchased Extras on a Flight

Airlines are always looking for new sources of revenue. Things like wi-fi passes, seat assignments, and inflight entertainment are often offered for purchase before and during flights. Unfortunately, these paid-for amenities don’t always work as expected. Wi-fi can be inconsistent or unavailable, and seats can break, as can the systems that provide power to the inflight entertainment units. The DOT now requires airlines to provide prompt refunds for these problems as well.

Airlines Are Voluntarily Adding Customer Care Benefits

One more bit of good news for travelers in the United States is the voluntary changes that 10 domestic airlines recently made to improve their customer care plans.

These changes are something that the DOT will likely eventually mandate to mimic the duty of care benefits the EU 261 provides for European air travelers: complimentary overnight hotel stays, plus food and beverage vouchers (among other things), after an event that the airline could control.

The Department of Transportation’s Airline Customer Service Dashboard can help air travelers quickly determine what their carrier has agreed to do for them if an unexpected cancellation or extended delay strands them in a place other than their final destination.

Final Thoughts About the DOT’s New Rules for Air Travel

Air travelers should be encouraged by these new rules. These regulations are just the beginning though.

This month, the DOT proposed more changes in its drive to bring the United States passenger protection rules on par with what is already available to passengers in many other countries around the world.

The latest proposal will be open for public comment for 60 days. If it is passed, for the first time, United States passengers would receive cash compensation for flight cancellations and extended delays (with restrictions).

Unfortunately, the 60-day comment period will cross over to a new administration, and it will remain to be seen if that administration will be on board with these broad improvements for air passengers.

For now, air travelers should familiarize themselves with the new rules that protect them. Visit your airline’s updated contract of carriage, which will include its customer care plan. You’ll want to make sure you understand your updated rights before, during, and after your next flight. A link to that document can typically be found in the footer of the airline’s website.

And what about the Spanel family? After they contacted my advocacy team at Consumer Rescue, I asked our executive contact at American Airlines to have a look at how their cancellation and auto-rebooking were handled. She agreed that something had gone wrong in their system and processed the $8,171 refund. The Spanels traveled to Greece on another airline.