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New DOT Refund Rules for Airlines

New rules for airlines are now being rolled out.

Published on: 10/30/2024

Back in April of 2024, the DOT ruled that airlines must comply with defined refund policies for cancelled or delayed flights. We are ready to support you and your travel program and will assist with all refund processing.


Here’s how it will work:

  1. Airline has a cancellation or significant schedule change, and notification is sent to traveler and to Tangerine Agent.

  2. Traveler may contact Tangerine Travel to coordinate a change in plans and reissue tickets. Our agents will attempt to contact the traveler as well.

  3. If a refund is warranted, a Tangerine agent will help process.

  4. If contact is not made between traveler and agent within 72 hours the airline may issue a refund (if warranted) automatically to the original form of payment. We are not able to hold.

  5. The airline must process refunds within 7 business days.

  6. Ancillary items such as seats or upgrades that the traveler has paid for directly to the airline will automatically be refunded to the original form or payment by the airline.


Each airline is rolling out their own guide on how to process and Tangerine Travel is keeping a keen eye on these processes. We highly recommend travelers contact us as soon as a cancellation or significant schedule change has occurred. Main: 425-822-2333 or 1-800-678-8202


To read more about this ruling and the details, see below.


Refunds and Other Consumer Protections

“The U.S. Department of Transportation (Department or DOT) is requiring automatic refunds to consumers when a U.S. air carrier or a foreign air carrier cancels or makes a significant change to a scheduled flight to, from, or within the United States and the consumer is not offered or rejects alternative transportation and travel credits, vouchers, or other compensation. These automatic refunds must be provided promptly, i.e., within 7 business days for credit card payments and within 20 calendar days for other forms of payment. …”



Here are the highlights:

  • Canceled or significantly changed flights: Passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered. For the first time, the rule defines “significant change.” Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.

  • Significantly delayed baggage return: Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.

  • Extra services not provided: Passengers will be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service.

  • Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops. 

  • Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.

  • Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation. 

  • Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.


We are here to help!

Contact your clientservices@tangerinetravel.com team anytime for assistance.



10808 NE 145th Street, Bothell, WA - 98011

425.822.2333 or 800.678.8202

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