WASHINGTON — The U.S. Department of Transportation, led by Secretary Pete Buttigieg, announced sweeping new regulations on Wednesday, requiring airlines to offer automatic cash refunds for significant delays and cancellations, marking a major shift towards enhanced passenger rights.
“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg. “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Currently, airlines can offer passengers non-monetary refunds, such as free miles, for things like flight cancellations, delayed baggage, and poor Wi-Fi connections. The new rules will require airlines to refund the money passengers have paid for these services without requiring those passengers to ask for cash refunds.
“Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops,” stated Secretary Buttigieg, emphasizing the new mandate to simplify and ensure fairness in the refund process.
“Up until now, even though technically you’re already supposed to be able to get your money back for cancellation, you have to really fight for it,” Buttigieg said about the new rules. “A lot of times, what the airline would do is they’d say, ‘OK, well, here’s 5,000 miles,’ and that might sound great if you’re not aware that 5,000 miles is worth, say, $50 and you’re actually entitled to 400 bucks in a ticket refund,” Secretary Buttigieg explained.
The new rules will also eliminate the frustration of hidden and surprise fees by requiring airlines to disclose all costs upfront during the booking process. This transparency ensures that passengers can make informed decisions about their travel options, free from unexpected charges at the time of purchase or check-in.
“Today’s announcements will require airlines to both provide passengers better information about costs before ticket purchase, and promptly provide cash refunds to passengers when they are owed — not only saving passengers time and money, but also preventing headaches,” Buttigieg said.
Machinists Union District Legislative Director David Roderick expressed strong support for the new regulations, noting their broader impact on the industry and workforce. “These regulations are a win-win for everyone involved,” Roderick said. “Better treatment of passengers directly contributes to more profitable airlines, which translates to more good-paying union jobs. This is exactly the kind of legislation our members should champion.”
Since 2021, the Department of Transportation has implemented several sweeping new airline regulations aimed at protecting the flying public. Under Secretary Pete Buttigieg, the DOT has advanced the largest expansion of airline passenger rights, issued record fines, and returned more money to passengers than ever before.
Thanks to initiatives imposed by the Department of Transportation, all major U.S. airlines now guarantee free rebooking and meals, with most offering hotel accommodations for significant delays. These guarantees are all enforceable by the DOT.
In 2023, the U.S. achieved a record-low flight cancellation rate of under 1.2% despite high travel volumes. DOT is also reviewing airline privacy practices and loyalty programs aimed at further expanding passenger rights and transparency.
