For years, air travelers have complained that getting a refund after a canceled or severely delayed flight felt like an obstacle course. In 2026, that landscape is changing.

New U.S. rules that finished taking effect in late 2024, combined with evolving policies in Europe and airline-by-airline practices worldwide, mean passengers now have clearer rights and, in some cases, automatic cash refunds when flights do not go as planned.

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New U.S. rules: Automatic cash refunds become the default

In the United States, a landmark rule from the Department of Transportation has transformed how airline refunds are supposed to work. Finalized in April 2024 and fully in force by October 28, 2024, the regulation requires airlines and ticket agents to provide automatic cash refunds when a flight is canceled or significantly changed and a passenger decides not to travel. The change shifts the burden from passengers, who previously had to learn each carrier’s policy and then fight for a refund, onto airlines that must now identify when money is owed and issue it without being asked.

The rule also establishes clear standards for timing and form of payment. For tickets purchased with a credit card, refunds must be processed within seven business days of becoming due. For other payment methods, such as debit cards, cash, or checks, airlines have 20 calendar days. Refunds must be returned in cash or the original form of payment, including the return of frequent flyer miles where applicable, rather than in vouchers or credits, unless a traveler affirmatively chooses an alternative.

Transportation officials argue that the change closes a long-standing loophole that allowed carriers to maintain complex policies and make vouchers the default response when schedules unraveled. The agency has stressed that passengers are not required to accept travel credits that might expire or tie them to a single carrier if they would prefer their money back. As of 2026, airlines that fail to comply face the prospect of federal enforcement actions, including fines and corrective orders.

What counts as a “significant” change or delay in 2026

The new rules also codify, for the first time, what qualifies as a “significant” change that triggers refund rights when a passenger no longer wishes to travel. For domestic itineraries, a significant change includes a shift of more than three hours in the scheduled departure or arrival time. For international flights, the threshold is six hours. If the new schedule pushes a trip beyond those windows and the traveler declines rebooking, an automatic refund is due.

Significant changes go beyond pure timing. A switch to a different origin or destination airport, a rise in the number of connections, a forced downgrade to a lower cabin class, or rerouting that makes travel less accessible for passengers with disabilities can all qualify. If an airline moves a nonstop to a one-stop itinerary or shifts a flight from a primary airport to a distant secondary field, that can be grounds for a refund if the passenger opts out of the new arrangements.

These definitions fill a critical gap that became apparent after pandemic-era disruptions, when some carriers modified schedules or rerouted passengers and insisted that refunds were discretionary. In 2026, U.S. airlines no longer set their own thresholds for when schedule disruptions translate into refund eligibility. Instead, the federal standard applies across the industry, and officials continue to remind carriers that they must clearly inform customers of these rights whenever a flight is canceled or significantly changed.

Beyond flights: Bags, extras and what is now refundable

Refund rules in the United States now extend beyond the ticket itself. Under the automatic refund regulation, passengers are entitled to a refund of checked baggage fees when their luggage is significantly delayed and they file a mishandled baggage report. For domestic flights, “significant” generally means a bag that has not arrived within 12 hours after the aircraft reaches the gate; for international trips, longer timelines apply depending on flight length, with thresholds at roughly 15 and 30 hours.

Ancillary services that have become standard revenue streams for airlines are also covered. If a traveler pays for seat selection, onboard Wi-Fi, inflight entertainment, early boarding or other add-ons and the airline fails to provide that service, the associated fee must be refunded. Those sums must be returned in the same way as ticket payments: automatically, in cash or the original form of payment, and in full.

For passengers, the broadened scope means that disruption-related compensation no longer ends at the base fare. A traveler who never sees their bag on a weekend trip or who pays for extra legroom that is later removed can expect the corresponding charges to be reversed without having to press their case repeatedly with customer service. Airlines are required to treat these amounts as refundable obligations rather than discretionary courtesies.

The federal rules set a floor for refund rights, but individual airline policies still matter, especially when flights are delayed rather than canceled or when disruptions stem from causes outside a carrier’s control. U.S. law does not require compensation for delays alone, nor does it mandate meals or hotel rooms during weather-related disruptions. In those circumstances, what travelers receive often depends on each airline’s customer service commitments and on temporary waivers issued during major storms or operational crises.

In practice, carriers frequently roll out travel advisories when a winter storm or hurricane threatens key hubs, allowing passengers to change flights without incurring change fees or fare differences within set date and routing windows. Some airlines extend these waivers even to basic economy tickets, which are usually more restrictive. During large-scale weather events in late 2025 and early 2026, several major U.S. carriers temporarily relaxed rules to permit rebooking at no additional cost and, in some cases, offered refunds if a flight was canceled or significantly delayed.

When a disruption is within the airline’s control, such as a mechanical issue or crew shortage, many carriers promise more generous treatment. Public commitments posted by the Department of Transportation outline which airlines offer hotel accommodations for overnight delays, meal vouchers after a certain number of hours, or free rebooking on the next available flight. While not all of these benefits are legally mandated, they create a competitive baseline that passengers can reference when pushing for assistance at the airport or through customer service channels.

Europe’s evolving compensation rules and what U.S. travelers should expect

On the other side of the Atlantic, air passenger rights continue to be shaped by the long-standing EU261 regulation and by proposed updates aimed at balancing consumer protection with airline finances. Under the current framework, travelers departing from airports in the European Union, plus Iceland, Norway and Switzerland, and those flying to the EU on an EU carrier, may be entitled to fixed-sum compensation when flights are canceled at short notice or arrive more than three hours late, provided the disruption is not caused by extraordinary circumstances such as severe weather or air traffic control strikes.

Compensation levels under EU261 are distance-based, with higher payments for long-haul flights. That model has made the European regime one of the most robust in the world but has also drawn pushback from airlines that say it imposes high costs and encourages litigation. In 2025, EU member states agreed on a position to raise the delay thresholds before compensation kicks in and adjust payout amounts, for example requiring four-hour delays rather than three on many routes while slightly increasing or reducing certain compensation bands.

The changes are not yet fully in force and remain subject to approval by the European Parliament, but they signal a likely shift toward fewer passengers qualifying for cash awards in delay scenarios. At the same time, the policy package adds new rights meant to improve information and assistance, including clearer obligations for airlines to inform travelers of their options, defined deadlines for processing claims, and confirmed rights to basic care such as meals and accommodation during extended disruptions. For U.S.-based travelers flying within or from Europe in 2026, it remains essential to check whether EU261 or any updated version applies, as protections can be more extensive than those on purely domestic U.S. routes.

How to actually get your money back when things go wrong

Even with automatic refund rules on the books, passengers still need to navigate practical steps when a trip unravels. In the United States, if a flight is canceled or significantly changed and you choose not to travel, airlines are supposed to process a refund proactively. However, consumer advocates say it remains wise to document the disruption, keep screenshots of cancellation notices and schedule changes, and monitor your original payment method to confirm that funds arrive within the required seven or 20-day windows.

If the money does not arrive, travelers can contact the airline and reference the Department of Transportation’s automatic refund rule, specifying that they are declining any credits and requesting a refund in the original form of payment. Written communication through email or secure messaging in the airline’s app can create a record. If an airline refuses, provides incorrect information, or simply does not respond, U.S. passengers can escalate by filing a complaint with the Department of Transportation’s Office of Aviation Consumer Protection, which tracks patterns of noncompliance and can take enforcement action.

For flights that begin or end abroad, the process may depend on local regulations and the airline’s home jurisdiction. In Europe, travelers typically submit claims directly through the carrier’s website using forms mandated under EU261 and, if necessary, pursue further redress through national enforcement bodies or small claims courts. Around the world, some travelers also turn to paid claims companies that pursue compensation on their behalf, though such services can take substantial fees from any payout. In 2026, regulators in both the United States and Europe are urging passengers to use official channels first, emphasizing that many rights can be exercised without paying third parties.

The limits of refund rights and the role of travel insurance

Refund rules are powerful tools, but they are not a cure-all for disrupted trips. Legally required refunds in the United States only apply when a flight is canceled or significantly changed and the traveler decides not to continue, when baggage is significantly delayed, or when prepaid extras are not provided. They do not compensate passengers for lost vacation days, missed cruises, nonrefundable hotel nights or prepaid tours that cannot be rescheduled.

As airfare rules have hardened and hotels, cruise lines and tour operators have tightened their own cancellation policies, many travelers are turning to a combination of flexible booking options and travel insurance to cover those secondary losses. Some premium credit cards include trip interruption and delay benefits that can reimburse for lodging, meals and alternative transportation when common carriers are delayed or canceled for covered reasons. Standalone travel insurance policies may also step in when a missed connection triggers a cascade of nonrefundable expenses.

Experts caution that coverage depends on the fine print. Weather-related disruptions are often treated differently from mechanical failures, and generalized “fear of travel” is usually not covered unless a traveler buys a costly “cancel for any reason” upgrade. In 2026, insurers and card issuers continue to refine benefits in response to repeated seasons of travel chaos, making it important for passengers to read current terms and, when in doubt, confirm coverage specifics before departure.

What to watch in 2026: Enforcement, politics and passenger behavior

As the 2026 travel season unfolds, the effectiveness of new refund protections will depend heavily on enforcement and on how airlines adapt. U.S. Transportation Secretary Pete Buttigieg has publicly warned major carriers that his department expects full compliance with automatic refund obligations and transparency about passenger rights. The agency has encouraged travelers to report problems, signaling that complaint data will help guide future investigations and potential penalties for noncompliant airlines.

On the policy front, air travel remains a political issue, with debates over so-called junk fees, family seating charges and on-time performance continuing in Washington. Additional rulemakings targeting seat fee disclosures and comparison tools for basic amenities are in various stages, and any change in administration could influence how aggressively existing rules are enforced. In Europe, airlines and consumer groups are preparing for a legislative showdown over the proposed changes to EU261, with the outcome poised to shape delay compensation for years.

Passengers themselves are also adjusting their behavior. After a series of summers marked by cancellations and gridlock, many travelers now prioritize nonstops over connections, consider building in buffer days for critical events, and pay closer attention to the difference between rebooking options and refund rights when itineraries collapse. With clearer rules in place and growing public awareness, 2026 is emerging as a year when understanding the fine print of flight disruptions is no longer optional but a central part of planning any major trip.