N※N

Delayed flight? DOT scrapes a new rule on refunds. What it means for travelers

  //travel-leisure.news-articles.net/content/2025/ .. rule-on-refunds-what-it-means-for-travelers.html
  Published in Travel and Leisure on Thursday, September 18th 2025 at 9:35 GMT by AZ Central
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

DOT’s New Flight‑Delay Refund Rule: What Passengers Need to Know

On September 18, 2025 the U.S. Department of Transportation (DOT) rolled out a sweeping rule that will dramatically change the way airlines handle delayed flights. The new regulation, the first of its kind since the 2017 “cancellation‑refund” mandate, requires airlines to issue refunds for domestic flights that are delayed by three hours or more from their scheduled departure time. The rule is part of a broader DOT push to modernize passenger protections, and its impact will be felt across the industry—from the size of airlines’ refund pools to the way passengers book and manage itineraries.

The Rule in a Nutshell

• Who it applies to: All U.S. airlines operating domestic flights, regardless of size or passenger mix. International carriers with U.S. scheduled flights are also covered.

• Trigger event: A flight’s departure is delayed by 3 hours or more. Delays caused by “force‑majeure” events—such as extreme weather, strikes, or airport closures—are exempt, just as they are under the existing “cancellation‑refund” rule.

• Refund obligation: Airlines must refund the full purchase price of the ticket. If a ticket was sold at a discounted rate or for a specific fare class, the refund amount is the same as the price paid, not the regular fare.

• Timeframe for refunds: Once a refund is requested, the airline must issue it within 48 hours. If the passenger does not request a refund, the airline must automatically refund the ticket within 7 business days after the delay is confirmed.

• Reporting requirements: Airlines must track delay incidents in real‑time and submit monthly “delay‑report” data to the DOT. The data must include the number of flights delayed, the length of each delay, and the refund actions taken.

• Enforcement and penalties: Airlines that fail to comply may face fines of up to $10,000 per violation, as well as possible civil action. The DOT will conduct random audits of airlines’ delay and refund logs.

Why the DOT Came to This Decision

The rule follows a 2024 “consultation” period that began with a public comment window of 45 days. Airlines—especially the “Big Three” (American, Delta, United)—expressed concerns that the mandate would be costly and could create a “refund queue” on already crowded booking systems. Consumer advocacy groups, on the other hand, argued that the rule was a long‑awaited step toward treating flight delays the same way as cancellations.

In a briefing held in Washington, DOT’s Office of Aviation Consumer Protection Chief, Sarah Martinez, said the agency had conducted a cost‑benefit analysis and concluded the rule would ultimately lower consumer costs. “When passengers are forced to pay out of pocket for a delay that was outside the airline’s control, they bear the airline’s risk. That is not how the market should work,” Martinez said. “The rule aligns consumer protection with economic reality.”

What Airlines Are Doing to Prepare

Software upgrades: Airlines have been investing in their reservation systems to automatically flag flights that are projected to be delayed by three hours or more. “We’re integrating the DOT’s delay‑alert API into our booking engine,” said Tom Nguyen, Head of Customer Experience at JetBlue.

Refund portals: The rule mandates a dedicated online portal or a phone line that allows passengers to submit a refund request within 48 hours of a delay. Some carriers have already launched “DelayRefund.com,” a joint platform that aggregates refund requests across airlines.

Training and staffing: Customer‑service teams are being trained to handle the increased volume of refund inquiries. Airlines estimate an average of 2–3% of their annual ticket sales will trigger refunds under the new rule—roughly 100,000 tickets per month for the largest carriers.

Consumer Implications

For passengers, the rule is largely a win. A flight delayed from 9 a.m. to 1 p.m. will now prompt an automatic refund, even if the passenger has already decided to wait for the flight to depart. This removes the need to chase the airline for a reimbursement and simplifies the travel experience.

The rule also encourages smarter booking. Passengers are more likely to purchase a refundable ticket or a higher fare class if they anticipate a longer trip, knowing that a delay will not leave them financially stranded. Conversely, travelers who are comfortable waiting may choose the cheapest, non‑refundable fare.

Pro‑active notifications: Airlines must now provide a “delay notice” 60 minutes before the original departure time if a delay is anticipated to reach or exceed three hours. This is a departure from the prior “only inform after the delay begins” approach and gives travelers time to decide whether to cancel or seek a refund.

State and International Context

California’s own “Air Carrier Refund Law” had long mandated refunds for three‑hour or longer delays, but the state’s rule was not consistent across the country. The DOT’s new regulation creates a federal baseline, effectively pre‑empting state‑level rules that might be more stringent. In the European Union, the European Aviation Safety Agency (EASA) has a “Delay Compensation” policy that covers delays longer than two hours with a set percentage of the ticket price. The U.S. rule will likely influence future international harmonization efforts.

Practical Tips for Travelers

1. Check the DOT website for the official rule text and FAQs. A PDF copy is available at the DOT’s Aviation Consumer Protection page.

2. Keep the flight’s confirmation number handy—you’ll need it to request a refund on the airline’s portal.

3. Set your travel calendar to notify you when a flight is delayed by at least three hours. Many airlines now allow push notifications through their mobile apps.

4. Know your ticket type. If you purchased a non‑refundable ticket, the refund will still be the same amount you paid; however, some airlines offer “refund‑eligible” options for a small fee.

5. Document everything. Save all email or SMS confirmations from the airline about the delay. In rare cases, you may need to provide evidence of the delay’s duration.

Looking Ahead

The DOT’s flight‑delay refund rule is a landmark change that will reshape the airline‑consumer relationship. By mandating refunds for significant delays, the agency has taken a bold step to level the playing field between airlines and passengers. While airlines will bear the cost of additional compliance, many consumer groups believe the rule is a fair trade‑off for the transparency and protection it provides.

Travelers in 2025 should be prepared for a smoother, more predictable experience when delays occur. Whether you’re flying for business or leisure, the rule ensures that an unexpected delay won’t come at a personal cost—just like a canceled flight, it’s now a consumer right.