Flight Delay Compensation: What to Know

Delays and cancellations of flights can be quite annoying, and until recently, it was frequently difficult to secure cash refunds or other flight delay compensation for these interruptions. During the administration of President Joe Biden, the U.S. Department of Transportation (DOT) implemented a new rule in 2024 with the intention of making traveling simpler.

The rule mandated that airlines pay for meals and hotel stays when they were at fault. In addition to these, they are mandated to pay compensation for delays lasting three hours or more. However, the Trump administration has just declared plans to rescind this rule.

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Let’s examine the DOT’s cancellation and delay restrictions in more detail. Understanding your rights can help you save time and money and ensure a smooth experience.

No Compensation for Flight Delay (Scrapes Biden-Era Rule)

The President Donald Trump administration announced that it will abandon a proposal that mandates airlines compensate passengers when carriers cause flight interruptions. The proposal was put out by the predecessor, whose goal was to make airlines responsible for cancellations and delays.

Under then-President Joe Biden, the U.S. Department of Transportation requested public input in December 2024 on the regulatory process. They sought that airlines should be obliged to pay $200–$300 for domestic delays of three hours or more, and up to $775 for lengthier delays. 

Whether airlines should be required to compensate customers for meals, lodging, and other expenses following carrier disruptions. Moreover, if flights are unavailable for 24 hours, they might have to use competitors and compensate for the charges. However, American Airlines vehemently opposed the plan.

The DOT intends to withdraw the notice “consistent with department and administration priorities,” as briefed by the White House.

Additionally, the DOT stated that it is thinking of repealing rules published under Biden in April 2024. The rules mandated that airlines and ticket agents disclose service fees along with airfares to protect customers from unexpected costs. The court suspended the mandate while an industry legal challenge was pending.

What the Rollback Means for Travelers

Due to the proposed compensation rule’s repeal, airlines are no longer legally obligated to repay passengers in cash for lengthy delays and carrier-caused cancellations in the country. The Trump administration’s decision to abandon the Biden-era plan left passengers with few alternatives. Passengers in the United States currently have:

• Flight cancellation refunds: The rule is still in effect; however, passengers may need to get in touch with the airlines to make sure the compensation is handled.
• Third-party travel insurance or credit card travel protections: if the airlines refuse to pay for expenses related to flight delays or cancellations, travelers should turn to their credit card benefits or travel insurance. These options may reimburse costs such as meals, accommodations, or missed connections.

DOT Regulations on Flight Delays

U.S. law refrains airlines from paying monetary damages for the majority of delays, in contrast to Europe’s EU261 rule. DOT instead concentrates on compensation for cancellations or significant schedule modifications, as well as tarmac delays.

Domestic vs. International Flights: All flights that leave or arrive in the United States are subject to DOT regulations. It doesn’t matter whether they are domestic or international flights (operated by U.S. airlines).

Tarmac Delays: Airlines must enable customers to depart three hours before domestic flights and four hours before international flights. Exceptions apply only in cases of safety or security concerns. During lengthy waits, they have to provide food, water, and functional bathrooms.

Department of Transportation Airline Refund Rules

The U.S. Department of Transportation released a final rule in April 2024. They released this rule in response to ongoing complaints from travelers attempting to collect the money they were entitled to.

• You can claim a refund if the airline cancels a flight for any reason and does not rebook you on another flight. Also, if you do not actively accept alternative compensation, such as a flight voucher or miles, you can ask for a refund.
• If the airline cancels your flight and offers an alternative itinerary or compensation, but you refuse it. In such cases, you can claim a full refund.
• If your flight is considerably changed and you do not wish to fly on the revised or rebooked itinerary. In such a situation, you were also entitled to a refund. The changing situations include:
  • A domestic flight arrives or departs more than 3 hours later than planned;
  • An international flight arrives more than 6 hours late or leaves more than 6 hours early.
  • The airline has modified the destination airport.
  • The quantity of connections has increased.
  • The airline demotes the traveler to a lower service class.

• Passengers who file a mishandled baggage report can claim a checked baggage fee refund. For domestic flights, this applies after 12 hours; for international flights, after 15–30 hours.
• You are eligible for compensation for the price of any ancillary services that an airline does not provide. It includes Wi-Fi, seat preference, or in-flight entertainment.

Cash refunds no longer need to be specifically requested; they must be “automatic and prompt.” The airline has seven days to process refunds for credit card transactions and twenty days for other payment methods. The payment method includes award travel using airline miles. Additionally, airlines are no longer allowed to substitute vouchers, travel credit, or other forms of compensation unless the passenger specifically authorizes them.

Note: If you accept an airline-rebooked trip or proceed with a substantially altered schedule, you are not eligible for a refund.

Looking for the right airline office or need help with a travel issue?

We can guide you instantly.

Call Now: +1-844-562-0277 (Toll-Free)

Final Words

Since the Biden-era rule has not taken effect, airlines are free to develop their own delayed flight procedures. They may differ and are not enforceable by law in the United States. This implies that even in situations where a delay was obviously the airline’s fault. These faults included the event of technical difficulties or outages, and travelers may still feel stuck without receiving any compensation.

However, passengers can claim a refund or seek flight delay compensation if the airline cancels a flight or any services without notifying them. Therefore, the most reliable way to lessen such risks is to book using a credit card that offers travel insurance.

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