DOT's New Airline Refund Rule: What Travelers Need to Know

The Department of Transportation introduces a new rule requiring U.S. airlines to automatically refund passengers for flight cancellations, significant changes, and baggage delays. Refunds must adhere to specified timelines and be issued in cash or the original payment method. The rule defines "significant change" criteria and prohibits airlines from offering vouchers as the sole compensation option. Passengers unable to travel due to serious communicable diseases receive transferable vouchers valid for five years. The rule also mandates airlines to promptly notify affected consumers of their refund rights. Effective from October 28, 2025, passengers experiencing medical issues preventing travel to, from, or within the U.S. will be eligible for travel vouchers. Evidence of the medical condition may be required. These provisions aim to enhance passenger rights and ensure fair compensation in various travel scenarios.