In April 2024, the US Department of Transportation (DOT) finalised a long-anticipated rule to strengthen airline refund rights for American travellers. The regulation – hailed as a major win for consumer transparency and accountability – requires US airlines to automatically issue cash refunds in specific circumstances, including cancellations, significant delays, undelivered baggage, and failure to provide paid ancillary services.
This marks a meaningful shift from the pre-2024 status quo, when refund policies varied widely by carrier and often placed the burden of action squarely on the passenger. As the first full year under these new regulations continues to unfold, one point remains clear from the US travel insurance industry: these rules, while a step forward, are not a replacement for travel insurance.
