If you find yourself stranded at the airport when you’re supposed to be relaxing on vacation, the last thing you want to do is haggle with the airline over flight delay compensation. Fortunately for passengers, airlines operating in the United States are now legally required to follow a strict set of rules when it comes to reimbursing travelers for flight delays and cancellations.
In October 2024, the Department of Transportation put new federal rules into effect that require all airlines flying to, from, or within the US to provide passengers with automatic refunds if their flights are canceled or significantly changed. The rules also provide a precise definition for a “significant change” to eliminate any guesswork there.
Here’s a brief overview of how the rules work: If a passenger is on a flight that is canceled or meets the definition of being significantly changed for any reason, and the flyer refuses the changed flight schedule, turns down the option to rebook on an alternate flight, or says no to any other compensation like an airline voucher, they will receive an automatic cash refund to the original form of payment for the unused portion of their ticket. The rules also cover refunds for extra fees for checked luggage that gets delayed, as well as onboard services passengers might have paid for but never received, like Wi-Fi, seat selection, or inflight entertainment purchases.
It’s a major improvement for airline passenger rights in the US—but in order for travelers to take advantage of the new protections, they need to understand how the rules are applied during real-life scenarios. “Many consumers, especially in the US, remain unaware of their rights as passengers,” Eric Napoli, chief legal officer at AirHelp, which assists passengers with airline refunds and compensation, tells Condé Nast Traveler. “Until recently, there were no strict regulations to protect them. It’s crucial for passengers to be aware of these rights to ensure they receive the proper reimbursements when these situations arise.”
Here’s everything travelers should know about flight delay and cancellation compensation in the US—plus expert tips on common issues you might run into, and how to solve them.
This article has been updated with new information since its original publish date.
Refunds for significant flight changes and cancellations
Under the new rules, passengers are entitled to automatic refunds for flights that are canceled, significantly delayed, or experience a “significant change” for any reason—including “uncontrollable” factors such as weather. This applies only if alternative transportation or travel vouchers aren’t available or are rejected by the passenger. That’s the key condition. If an airline is able to book you on another flight—on the same day or even the next—and you accept it, then the new rules don’t apply. But if you refuse the rebooking, then you are entitled to the automatic refund.
Additionally, the new rule defines what the DOT considers a “significant change” for the first time. Adjustments to a flight itinerary that meet any of the following criteria will be considered significantly changed—and therefore, entitled to a full refund:
