What does an airline owe you when it cancels your flight?
For a qualifying cancellation or significant change, if you reject the alternative transportation offered, U.S. DOT rules generally require a prompt refund to the original form of payment.
Quick Answer
Since a Department of Transportation rule took effect on June 25, 2024, U.S. and foreign airlines operating flights to, from or within the United States must automatically refund passengers — without them having to ask — when a flight is cancelled or "significantly changed" and the passenger doesn't accept the alternative offered. For the first time, DOT defined "significant change" precisely: a domestic delay of more than 3 hours (6 hours internationally), a changed departure or arrival airport, added connections, or a downgrade in service class all qualify. Refunds must go back to the original form of payment, in cash, without the passenger having to request one.
Key Facts
- Rule took effect
- June 25, 2024 (U.S. DOT automatic refund rule)
- "Significant change" means
- Domestic delay over 3 hours, international over 6, changed airports, added connections, or a service downgrade
- Refund must be
- Automatic, in cash, to the original payment method — no request required
Refunds are now automatic, not optional
Before this rule, many airlines defaulted to offering vouchers or credits and made passengers explicitly request a cash refund. The 2024 DOT rule flips that: airlines must proactively issue a cash refund once a flight is cancelled or significantly changed and the passenger doesn't accept the rebooking offered — no request, no chasing customer service.
The rule finally defines "significant"
Airlines previously had wide latitude to decide what counted as a big enough schedule change to trigger a refund. DOT's rule sets specific thresholds for the first time: delays past 3 hours domestic or 6 hours international, a different departure or arrival airport, extra connections, or a downgrade to a lower service class.
It covers fees too
The refund obligation extends beyond the ticket price to extra service fees the passenger paid for and didn't receive — things like seat-selection or baggage fees for a flight that no longer works with the new itinerary.