Updated Nov 13, 2026

The DOT automatic refund rule, explained (2026)

Since 2024, DOT rules require US and foreign airlines to automatically refund fares, taxes and paid extras when they cancel or significantly change a flight to, from or within the US and you don't accept an alternative. A significant change includes arriving 3+ hours late domestically or 6+ internationally.

Key facts

Refunds are automatic—you shouldn't have to ask multiple times
7 business days for credit card refunds, 20 calendar days for other payment
Applies to all flights to, from or within the US
Covers nonrefundable tickets when the airline cancels
Includes fare, taxes, bag fees, seat selection, and other paid extras
Not responding to a rebooking offer and not flying counts as declining

What counts as a cancellation?

A flight is cancelled when the airline stops operating it. Under 14 CFR 260.6, you're owed a refund if you don't travel and don't accept a rebooking, credit, voucher or miles.

Exception (temporary): A flight that only gets a new flight number isn't currently treated as cancelled. DOT paused enforcement for renumbered flights that run without a significant change, until July 7, 2027. A rulemaking to redefine "cancellation" (Refund III) is pending.

What counts as a significant change?

Under 49 U.S.C. 42305, a significant change includes:

Arriving 3+ hours late on a domestic flight
Arriving 6+ hours late on an international flight
Departing 3+ hours early (domestic) or 6+ hours early (international)
A different departure or arrival airport
More connections than originally booked
A cabin downgrade (e.g., business to economy)

The delay is measured against your scheduled arrival time, not departure. A flight that departs late but arrives close to schedule may not qualify.

When does the refund trigger automatically?

The refund triggers when you don't accept the alternative. This includes:

Actively declining a rebooking offer
Not responding to a rebooking offer and not taking the new flight
Declining a voucher, credit, or miles offer

If you accept the rebooking and fly, or accept a credit/voucher, you've waived your refund right for that flight.

Refund deadlines

Payment method	Deadline
Credit card	7 business days
Debit card, cash, check, other	20 calendar days

Credits and vouchers

Airlines can offer you a credit or voucher instead of a cash refund, but:

They must tell you a cash refund is available before offering the credit
You can always choose the cash refund
Any credit must be valid for at least 5 years
The credit cannot have fees attached

Bags and extras

The rule also covers refunds for:

Checked bags: If your bag doesn't arrive within 12 hours (domestic) or 15–30 hours (international), you're owed a bag fee refund
Unused paid services: WiFi you paid for but couldn't use, seat selection on a cancelled flight, etc.

What changed in 2025 and 2026?

November 2025: DOT withdrew the proposed cash-compensation rule. There is no federal cash compensation for delays or cancellations in the US.
July 2026: DOT paused enforcement for flights that are renumbered but otherwise run unchanged, until July 7, 2027.
Pending: A "Refund III" rulemaking is underway that may redefine what counts as a cancellation.

The core refund rule from 2024 stands: automatic refunds for cancellations and significant changes.

Who's covered?

The rule applies to:

All passengers on flights to, from or within the US
US and foreign airlines alike
Tickets purchased directly from the airline or through third parties

Third-party bookings: If you booked through a site like Expedia that charged your card, they handle the fare refund. Extras paid directly to the airline (bag fees, upgrades) go through the airline.

Primary sources

Changelog

Nov 13, 2026: Updated with July 2026 renumbered-flight enforcement pause and Refund III status.
Nov 2025: Added cash-compensation withdrawal.
2024: Original automatic refund rule took effect.

Check your flight

Related guides

Last checked against DOT rules: 2026-11-13