24 HR Flight Cancellation Refund Rule ‡

In the age of COVID-19, knowing the ins and outs of getting a refund for an airline ticket has never felt more important. Passengers who are navigating an ever-changing web of travel restrictions and personal risk factors need flexible change and cancellation policies. But even before airlines started waiving fees and issuing refunds during the coronavirus crisis, there was the 24-hour flight cancellation rule, which helped passengers get their money back no matter what type of ticket they booked.

The Department of Transportation’s 24-hour refund regulation states that all airlines flying in the U.S., even international carriers, must issue a full refund if the reservation is canceled within a one-day window. Here’s what to know about this helpful policy for when you want to cancel a flight within 24 hours.

What exactly is the 24-hour flight cancellation rule?

It’s a customer service standard set by the Department of Transportation that says airlines must let travelers hold a reservation at the quoted fare for 24 hours without payment, or allow a purchased reservation to be canceled within 24 hours without penalty and with a full refund to the original form of payment. All airlines operating to, from, and within the U.S. must comply with the 24-hour rule. The clock starts ticking on the 24 hours once the ticket purchase has been made.

The regulation is especially useful to fliers who want to pounce on a sudden flight deal or want an extra day to firm up their plans. Let’s say a mistake fare pops up. You want to buy tickets for you and your partner, but she’s stuck in a meeting for the next few hours. Instead of waiting, Keyes says the best move is to book the deal to lock in the low price and take the 24 hours to decide whether to keep the tickets or opt for the full refund.

The 24-hour refund rule is applicable to all fares, even those restrictive basic economy tickets or other typically non-refundable bookings. However, there are some cases that are exempt from the refund guidelines.

The exceptions

It’s important to note that the DOT rule does not apply in a handful of cases. The refund policy only applies to bookings made at least seven days or more before departure. But if you make a reservation less than seven days before the flight’s departure date, the 24-hour rule does not cover your booking—meaning you have no grace period to cancel and receive a full refund.

Additionally, airlines have the choice to either allow customers to hold their fare without payment for 24 hours or issue a refund if the reservation is canceled within 24 hours of purchase. (American Airlines, for example, has an option to put the fare on hold instead of refunding payments.) They do not have to do both. So if you already held your fare for one day without payment, and you decide to purchase that ticket, you won’t be eligible for a refund under the DOT regulation should you decide to cancel.

What to do if an airline isn’t following the 24-hour rule

According to the DOT, airlines have to be upfront with customers about the one-day refund grace period both on their websites and when they are contacted by passengers. This means that not only does an explanation of the 24-hour reservation requirements need to be visible in the refund policy sections of an airline’s website (like on any terms and conditions pages or booking pop-up windows), but customer service representatives must also explain the rule to passengers who call them with questions about canceling.

Any airline (including international carriers) operating flights to or from the U.S. that does not follow these guidelines is seen to have “unfair and deceptive” practices, says the DOT. If customers suspect the airline isn't following the rule, they can file a consumer complaint on the Department’s website.

The agency takes these complaints seriously and acts on them. Just recently, it has issued several refund policy reminders to airlines not following rules during the coronavirus crisis after a steep uptick in consumer complaints.

No matter where you’re flying or how you’re booking, it pays to know the cancellation rules for your fare.