A significant shift in consumer air travel occurred last year when the US Department of Transportation finalized new rules that fundamentally strengthen airline refund rights.
A new article from the International Travel & Health Insurance Journal (ITIJ) breaks down exactly what the rules mean to travelers and the industry. USTIA provided background and commentary for the piece, titled “Industry Voice: Airline compensation legislation in the US.”
The new regulations mandate that US airlines must automatically issue cash refunds in specific, clearly defined circumstances. Beyond flight disruptions, the new rule also covers baggage. If your checked baggage isn’t returned within 12 hours after a domestic flight or 15-30 hours for international trips (depending on length), you’re guaranteed an automatic refund of your baggage fees.
But USTIA members remind travelers that it’s important to understand what these new rules don’t cover. While the airline must refund a disrupted flight or associated fees, this legislation doesn’t compensate you for broader financial consequences like missed hotel nights, new flights booked at higher prices, or meals and lodging during an unplanned overnight stay. It also doesn’t cover the cost of essentials you might need to buy if your luggage is significantly delayed.
The new refund rules are a milestone in airline consumer protection, but not a reason to bypass travel insurance. USTIA urges travellers not to confuse “automatic refund” with “comprehensive coverage.
