If your flight is canceled, US rules say the airline owes you a refund, and it has to be cash rather than a voucher if you decide not to travel. Since 2024, the Department of Transportation has required airlines to pay those refunds automatically, so you shouldn't have to call, argue or fill out a form to get your money back.
That's worth knowing heading into the holidays, when one storm or a bad day like this week's wind delays at San Francisco can wipe out thousands of trips at once.
When You're Owed a Refund
The rules cover more than outright cancellations. You're owed a refund if:
- Your flight is canceled and you decide not to take the new flight the airline offers
- Your flight is changed in a big way, which means leaving or arriving three or more hours off schedule on a domestic flight, or six or more hours on an international one
- The airline moves you to a different airport, adds a connection you didn't have or bumps you down to a lower cabin
- Your checked bag is badly delayed, in which case you get your bag fee back
- You paid for something you didn't get, like Wi-Fi that never worked or a seat assignment that vanished
The money is supposed to come back to the card you paid with within seven business days, or within 20 days for other payment methods. And it has to be the full amount you paid, taxes and fees included.
The Mistake That Costs People Their Refund
Here's the catch: the refund applies when you don't travel. If you accept the airline's rebooking, even by tapping "accept" in the app without thinking, you've generally agreed to the new flight and given up the refund.
That doesn't mean you should always say no. If the new flight works for you, take it. But if it gets you there too late to matter, like the morning after the wedding, turn it down and take the money instead. Then book something better on another airline if you can find it.
Airlines are also allowed to offer you a voucher, and some do so very cheerfully. You don't have to take it. A voucher is only a good deal if you were going to fly that airline again anyway and it's worth more than your refund.
What US Rules Don't Cover
This is where the US differs from Europe. In the EU and UK, travelers can get compensation on top of a refund when a flight is badly delayed or canceled for reasons the airline controls. US law doesn't require that. Some US airlines promise meal vouchers or hotel rooms when a delay is their fault, and the DOT keeps a dashboard listing what each airline has committed to, but cash compensation for your ruined evening isn't required.
One more thing to keep an eye on: the DOT has an ongoing rulemaking that could change how a "cancellation" is defined, which may affect some refunds down the line. For now, the 2024 rules are what airlines have to follow, and if one won't pay up, you can file a complaint with the DOT, which tends to get an airline's attention fast.
