How Can I Get A Credit Card Refund For My Canceled Flight?

As we enter the December holiday travel season, air travel has run rather smoothly for most U.S. air travelers throughout 2024. Despite a record number of passengers taking to the air, the flight cancellation rate was a low 1.6 percent through August, according to the Department of Transportation. This is in contrast to the pre-pandemic levels of 2018 and 2019, which saw a 1.7 percent and 2.0 percent cancellation rate for the same period, respectively.

Even so, this calls into question: If your airline flight is suddenly canceled, can you be reimbursed for the money you shelled out on your ticket? Here’s what airlines are required to provide — including for those additional, unexpected expenses you incurred on food or hotel stays because of a disrupted itinerary.

Airline refund policies and the DOT

If your flight is canceled or significantly delayed, you have the right to consumer protections that include a refund of your ticket price and baggage fees under the U.S. Department of Transportation’s consumer protections.

Most major airlines will rebook you on another flight with the same airline without additional payment, but you’re not required to accept the change — even if you have a nonrefundable ticket. What you’re entitled to depends on the circumstances:

• For canceled flights, no matter the reason, you have the right to a full refund if you decide against a rebooking on another flight.
• For schedule changes and significant delays, you have the right to a full refund if you decide against continuing your travel. According to a new rule from the Department of Transportation, a significant change or delay includes domestic flights whose arrival is changed to be either three or more hours early or late. International flights whose arrival has been changed to either six or more hours early or late is also considered significant. Other significant changes include a change of origin or destination airport, an increase in the number of connections and a change of equipment to a less accessible aircraft for those who are traveling with a disability.
• If your class of service is downgraded, you also have the right to a refund. For example, if you are asked to give up a business-class seat for economy, you have the right to a refund.

These protections apply whether you purchased your ticket directly with an airline, through a travel site or even through a travel agent. And while you’re not entitled to a refund on incidentals, for delays of more than three hours, your airline may offer to reimburse you for meals and even necessary hotel stays.

Bankrate senior industry analyst Ted Rossman offers this: “My best advice to someone affected by cancellations would be to start with whatever the airline is offering and then pull in their credit card as a backup, if the card offers travel protections.”

The 24-hour flight refund rule

When shopping for airline tickets, you may also be entitled to a refund if your plans change quickly. Airline tickets purchased at least 7 days prior to departure are entitled to a full refund within 24 hours of the purchase. Alternatively, airlines may allow you to hold a ticket at the listed price for 24 hours prior to purchasing the ticket.

Keep in mind, however, this 24-hour period only applies to refunds and not changes. For example, if you need to change the date of your flight or your name is misspelled, you may still incur fees for the change. Should you choose to cancel during the 24-hour period for a full refund, you may still owe any difference in the fare price.

Credit card travel insurance

Many top credit cards offer travel insurance as a benefit that kicks in after unexpected events disrupt your travel plans. If your domestic or international travel is interrupted by weather-related issues, for instance, your credit card might protect you from resulting monetary losses.

Your card’s travel insurance might also cover medical emergencies that occur while you’re away from home. If you or your travel companions fall sick during a trip, for example, your card might reimburse you for medical costs you paid out of pocket or for evacuation to a nearby medical facility.

If you need to stay at a hotel due to travel delays, your card’s insurance could take care of those expenses too. Same goes for missing or lost baggage: Your card’s travel insurance might supplement coverage offered by your airline or homeowners policy.

If you’re not sure whether your credit card offers travel insurance, check with your card issuer and ask exactly what protections it offers.

How to file a complaint

If your flight is canceled or significantly delayed, you should first try to resolve any complaints you have directly with your airline or a ticket agent. Typically, you’ll find airline customer service representatives at the airport available to address your concerns. You could also file a complaint directly with an airline. 

If you purchased your airline tickets with a credit card, the DOT’s new “Automatic Refund Rule” requires airlines to automatically issue refunds that are due within 7 business days. For other forms of payment, any refunds due must be automatically issued within 20 calendar days.

If you aren’t satisfied with the resolution the airline provides, consider filing a complaint directly with the DOT. You can submit a complaint online, call 202-366-4000 or mail your complaint to:

Office of Aviation Consumer Protection
U.S. Department of Transportation
1200 New Jersey Avenue SE
Washington, DC 20590

FAQs about credit card refunds for canceled flights

• Does Southwest refund canceled flights?
  

  Yes. If you choose not to travel on a rebooked flight or accept another form of payment, all airlines — including Southwest — are required to provide automatic refunds for a canceled flight. These payments must be made in cash or to the original method of payment.

• How long does it take to get my money back from a canceled Southwest flight?
  

  Southwest will provide refunds for canceled flights to your original method of payment within seven business days. This policy is in accordance with the U.S. Department of Transportation’s Automatic Refund Rule and is valid for all types of tickets — including nonrefundable tickets.

• Can I dispute an airline charge on my credit card?
  

  You can dispute an airline charge on your credit card, but winning the dispute depends on the stated airline policies and your specific circumstances. Your credit card company will likely require documentation to support your dispute before moving forward, and the dispute must be resolved within 90 days.

• How do I get a 100 percent refund on a flight cancellation?
  

  The U.S. Department of Transportation’s new Automatic Refund Rule requires all airlines to offer a full refund on flight cancellations, provided you do not agree to accept a new flight or another form of compensation. Refunds must be issued automatically in cash or to the original form of payment. Credit card refunds must be made within 7 business days, while refunds to other forms of payment must be issued within 20 calendar days.

The bottom line

If you find yourself without a flight due to an airline cancellation or a significant delay, you may be eligible for a refund of your ticket costs. You may also be reimbursed for food and hotel stays, depending on the airline.

Start by contacting your airline and asking for a refund to your credit card. Additionally, look into whether your credit card comes with travel insurance that can cover expenses airlines wont. If you’re still unhappy with the help you’re getting, consider filing a complaint directly with the airline or the Department of Transportation as a last resort.