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Key Takeaways
- The Securing Growth and Robust Leadership in American Aviation Act makes airline ticket refunds automatic if your flight is canceled or significantly delayed.
- The legislation also sets specific hour requirements for how long a plane must remain grounded for it to be considered delayed.
- The Act provides for refunds of baggage fees, also subject to hour requirements.
- U.S. airlines were originally required to post their baggage fees, but the U.S., but an appeals court has revoked this responsibility.
The next time your flight gets delayed, you might get paid for the time you spend waiting on the tarmac. New legislation from Congress and the Department of Transportation requires airlines to provide cash refunds for flights that are cancelled or significantly delayed. However, you won’t get paid unless you know the rules.
The new law is the Securing Growth and Robust Leadership in American Aviation Act, sometimes referred to as the FAA Reauthorization Act of 2024. It establishes stricter rules for passenger refunds, as well as defining “significant” delays for flights.
Before the new law, U.S. airlines were allowed to set their own rules for refunds, and those rules could vary from company to company. Here are some high points you can look forward to if you travel in 2025.
No More Fighting Airlines for Your Money
Many airlines stopped refunding cancelled flights during the COVID-19 pandemic. Existing law allowed passengers to request repayment for cancellations due to circumstances beyond their control, but the law was riddled with loopholes.
“I can personally attest that my colleagues and I spent almost six months in 2020 on the phone with airlines, getting tickets refunded for clients who had booked travel on flights that were ultimately canceled in the early days of the pandemic,” says Tiffany Funk, travel expert and co-founder of point.me, a flight booking tool that enables travelers to redeem their airline and credit card rewards for better flights. “It was a massive hassle, and many airlines, not just U.S. carriers, took 18 months or more to issue those refunds.”
Airlines lost the right to deny refunds in 2024, after the passage of the FAA Reauthorization Act. However, one provision didn’t kick in until 2025: Passengers who miss their flights due to a “serious communicable disease” can also receive refunds, provided that they have documented proof of their medical issue.
If your flight is cancelled, you now have a choice between receiving a ticket for another comparable flight, a voucher that can be used for at least five years, or a refund within seven business days if you paid for the flight with a credit card. This increases to 20 calendar days if you used another form of payment.
Refunds are also automatic if they meet qualifying circumstances. Airlines can no longer refuse to refund cancelled flights after Oct. 28, 2024.
Fast Fact
Nonrefundable tickets that fall outside the provided timelines for flight delays don’t qualify for guaranteed refunds under the new law.
What Counts As a “Significant” Airline Delay Now Has a Legal Definition
Passengers are now automatically entitled to cash refunds when their flights are canceled or if they reach their destinations three hours or more beyond the originally scheduled time. This increases to six hours for international flights. They can decline the option of being rebooked on another flight.
There are still some exceptions, regardless of how long the plane remains on the ground. Airlines don’t have to pay up if delays are “uncontrollable.” This includes circumstances like air traffic, dangerous weather, natural disasters, or security issues.
In addition, the airline only has to reimburse the cost of your ticket, not any expenses you incurred while you were waiting for takeoff. Those expensive snacks in the terminal are not covered.
Delays aren’t the only “significant changes” that can get you a refund. According to DOT, you can also get money back for a change in airports, an increase in the number of connections, or a significant downgrade or fewer travel perks while you’re onboard.
When Your Bag Doesn’t Turn Up: New Refund Timelines
Of course, your vacation could still be ruined if your luggage doesn’t show up with you. The new airline rules include provisions for your bags, too.
Passengers are entitled to refunds if their luggage is late by 12 hours or more. That increases to 15 to 30 hours for international flights, depending on the length of the flight. This rule applies only to your first two bags. For any additional luggage, you’re on your own.
And here’s another wrinkle. “This is linked to what you paid, so you don’t get a refund regardless of the delay if you have a free checked bag as a perk of a credit card,” Funk says.
The Act originally required airlines to state their baggage fees by April 30, 2025, but carriers protested this provision in court. The U.S. Court of Appeals eliminated this passenger protection, so airlines no longer have to state firm luggage prices.
Important
The appeals court rejected the suggestion that DOT has insufficient authority to issue regulations to protect consumers, so it’s possible that the provision for firm, stated prices for luggage will be revisited in subsequent legislation.
The Bottom Line
Whether you’re headed out on a dream vacation, an important business trip, or to visit distant family, nothing can ruin a trip faster than a missed flight. The U.S. Congress and the Department of Transportation have enacted new consumer protections regarding refunds, flight delays, and other potential troubles.
Before you fly, spend some time learning about your new rights as an air passenger. Consider consulting with a travel professional before your next trip to ensure you understand what these new regulations mean for you and your wallet.
