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CEO North America > CEO Life > Travel > What to Know About the Department of Transportation’s Rule That Lets You Cancel a Flight for Free

What to Know About the Department of Transportation’s Rule That Lets You Cancel a Flight for Free

in Travel
What to Know About the Department of Transportation’s Rule That Lets You Cancel a Flight for Free
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If you just booked a plane ticket for your next vacation but are having second thoughts about your flight choice, you aren’t entirely out of luck.

The Department of Transportation has a rule that essentially allows any traveler to cancel their flight for a full refund within 24 hours of booking. Still, there are some stipulations to be aware of. Here’s everything you should know about the 24-hour rule, and what to do if you have to cancel after this window.

The 24-hour Flight Cancellation Rule

According to the Department of Transportation (DoT), for “airline tickets that are purchased at least seven days before a flight’s scheduled departure, airlines are required to either allow passengers to cancel their reservation within 24 hours and receive a full refund without a penalty, or allow passengers to reserve a ticket (place it on hold) at the quoted price without paying for the ticket for 24 hours.”

Note that airlines are not required to offer both options. So, if you see a 24-hour hold option when you check out, know that it could mean you cannot cancel your flight for free after booking.

The rule also states that you must receive a refund, not an e-credit, if you cancel during this window. It must be issued within seven business days for credit card transactions or 20 business days for cash or check payments.

What to Do If Your Flight Is Canceled, According to a Travel Expert

Exceptions to the Rule

Airlines must comply with the 24-hour booking policy. However, they are not required to make changes free of charge during this window. If you want to move your flight to a different date, change your flight time, or fix a misspelled name, you might still need to pay for this. In this case, it might be better to cancel your flight within the 24-hour window for a full refund and rebook your flight with the correct information. Note that there may be a fare difference, even in such a short time frame.

A major caveat to the 24-hour rule is that it does not apply to any ticket booked through a third party. So, you don’t automatically have a 24-hour risk-free cancellation for flights booked through your favorite credit card’s travel portal or a travel agent. Many online travel agencies or travel portals will still offer this option to encourage users to book through them, but since it isn’t a requirement, read the terms and conditions before booking.

If you book your flight less than seven days before departure, you aren’t covered under the DoT’s rules. However, each airline has its own policy. For instance, American Airlines says you can get a full refund 24 hours after booking as long as you book at least two days before your flight — that’s five days more lenient than the DoT. United sticks with the DoT’s policy of one week prior to your flight, while Delta says that the cancellation request must be made by midnight the day after the ticket was purchased or midnight of the departure date of the first flight (whichever comes first).

If you think you might need to cancel after this window, it can be helpful to book a refundable ticket. However, post-pandemic, you’re much less restricted than you used to be.

Read the full article here

By Harrison Pierce / T&L

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