Why U.S. Passengers Still Face No Federal Delay Compensation

U.S. air travelers will see stronger refund rights this year, but not the automatic cash payouts many expected for long flight delays. A new 2024 Department of Transportation (DOT) rule sets clear standards for when airlines must issue automatic and prompt cash refunds after cancellations or “significant changes,” yet it stops short of ordering airlines to pay additional compensation for delays. The shift matters to millions who face late flights each year and want predictable remedies that do not depend on an airline’s goodwill or fine print.

What counts as a “significant change” and what it triggers

Under the DOT rule, a “significant change” includes any of the following:

• A delay of more than 3 hours on a domestic flight
• A delay of more than 6 hours on an international flight
• Changes to the departure or arrival airport
• Added connections that materially alter the itinerary
• A downgrade in service class
• An aircraft swap that affects a promised accessibility feature

When any of these occur and a passenger decides not to travel, airlines must:

1. Refund the fare in cash (not vouchers) unless the passenger clearly chooses a different option.
2. Process refunds within 7 days for credit card purchases and 20 days for other payment methods.
3. Refund ancillary fees—such as paid seat selection, checked bags, or Wi‑Fi—if the service wasn’t delivered.

Important: The rule prevents airlines from automatically issuing vouchers for canceled or significantly changed flights. If you opt out of the changed service, you are entitled to a cash refund.

What the policy does NOT do: delay compensation

The new rule does not mandate monetary compensation for flight delays alone. There is:

• No federal requirement that airlines pay cash if a flight arrives late, even by several hours.
• The DOT focuses on refunds when the service is fundamentally changed or canceled, rather than set cash payments based on delay duration.

According to analysis by VisaVerge.com, this approach keeps the United States out of step with the European Union and Canada, where regulators require cash payments for certain delays that are within an airline’s control.

Policy changes — practical effects

• Airlines can no longer make credits or vouchers the default when a flight is canceled or significantly changed. The refund must be in cash unless the passenger chooses otherwise.
• Refund rules extend beyond the base fare: if a bag never arrives or a paid seat isn’t provided, those fees must also be refunded.
• For routine delays that do not meet the “significant change” threshold, carriers are not legally required to pay cash refunds.

Many U.S. carriers publish voluntary commitments for controllable delays (maintenance, crew scheduling). Typical voluntary remedies include:

• Meal vouchers for long waits
• Rebooking assistance
• Hotel stays and ground transportation for overnight disruptions they control

Notable points:

• Most large U.S. airlines (except Frontier) now pledge hotel accommodations and ground transportation for overnight cancellations they control.
• Alaska, Hawaiian, JetBlue, and Southwest may offer travel credits or vouchers when delays exceed three hours, but these are discretionary and vary by carrier.

The DOT maintains a public dashboard that tracks each airline’s promised responses to cancellations and delays. Those promises help consumers but are not enforceable in the same way refunds are.

Special case: involuntary denied boarding (bumping)

Rules are stricter for passengers who are involuntarily denied boarding due to overbooking:

• Federal standards require cash compensation based on how long the traveler is delayed past the original arrival time.
• Compensation can reach up to 400% of the one‑way fare or $2,150, whichever is lower.
• This formula applies only to overbooking/denied boarding situations, not ordinary delays.

Industry reaction and debate

• U.S. carriers argue that EU-style compensation would raise costs and fares, especially amid fuel, weather, and air traffic control pressures.
• Consumer groups argue passengers deserve guaranteed cash payments for airline-caused delays and point to EU rules as a model that reduces avoidable disruptions.

The DOT’s 2024 rule prioritizes transparency and refund clarity, while leaving the question of mandatory delay compensation unresolved. As of September 2025, there is no sign of near‑term federal action to mandate delay payouts.

Practical guidance for travelers

• If your flight is canceled or “significantly changed” and you don’t want the new option, clearly request a cash refund. Expect the refund within 7 days for credit cards and 20 days for other payments. Ask for refunds of extras you paid for but didn’t receive.
• If your flight is delayed but not canceled, check the airline’s customer service plan. Ask about meal vouchers, hotel accommodations for overnight controllable disruptions, and any delay credits. These are discretionary and vary widely.
• If you’re involuntarily bumped, insist on the required cash compensation — remember the maximum: up to 400% of the one‑way fare or $2,150.
• For international trips, review rules like the Montreal Convention, which may allow reimbursement for certain losses tied to delays or cancellations. These claims are case‑specific and often require documentation or legal follow‑up.

Practical tips to preserve claims:

• Ask whether accepting a voucher affects your cash refund rights.
• If provided hotel/transport for an overnight controllable delay, confirm covered costs and required receipts.
• Keep boarding passes, delay notices, and receipts for out‑of‑pocket expenses.
• If a refund is owed and not processed, you can file a complaint with the DOT.

When extra protection helps

The refund-focused approach leaves a gap for travelers who still need to travel despite delays. Consider:

• Travel insurance policies with trip delay benefits that reimburse hotel stays, meals, and transportation after a set number of hours.
• Certain credit cards that offer trip delay protections.

While insurance adds cost, it can reduce stress when an airline’s voluntary policy falls short.

Where to get official information and to file complaints

For official guidance, tools, and complaint filing, visit the DOT’s aviation consumer page: https://www.transportation.gov/airconsumer

The DOT’s airline dashboard summarizes carrier promises on meals, hotels, and other amenities during disruptions. Those commitments are not legally binding like refunds, but they help you compare carriers before you buy.

Bottom line: The United States now requires cash refunds when a flight is canceled or significantly changed and prevents airlines from forcing vouchers on unwilling passengers. However, there is still no federal rule that pays you just because a plane arrives late. Know your rights, ask for what airlines already promise, keep documentation, and consider extra protection (insurance or card benefits) for the gaps that remain.