This article was originally published in July 2025 to discuss new U.S. Department of Transportation rules mandating airlines provide automatic cash refunds for travelers whose flights were canceled or significantly delayed. It was updated in Oct. 2025 to reflect the Trump administration’s decision to halt the implementation of these consumer protection guidelines.
Having a flight significantly delayed or canceled can be a dizzying experience, and it can lead to mounting costs if you’re not prepared. You may be stuck paying for additional meals or a hotel stay you didn’t plan for, and you can lose money by having to pay for certain items like seat selection or checked baggage fees a second time.
Unfortunately, several Biden-era rules for air travel proposed by the U.S. Department of Transportation last year are being dismantled by the Trump administration.
The proposed rules that won’t be implemented
The new travel rules would have come into play when:
- A flight is canceled or delayed significantly
- Checked baggage is delayed significantly
- Airlines fail to offer extra services that travelers purchased
The rules would have given passengers an automatic refund for the cost of flights and related purchases the airline did not provide when a flight didn’t go as planned or baggage took too long to arrive. The rules would have even applied if a flight was canceled or delayed for reasons beyond an airline’s control, including storms or other inclement weather.
The new rules would have also mandated that refunds be given to passengers automatically, without having to file paperwork or make the request. Airlines would have also been prohibited from offering reimbursement via travel vouchers, like they have in the past.
As mentioned, the new administration has decided not to implement these new rules. This move was anticipated, and the Department of Transportation even shared in a notice that it was “consistent with Department and administration priorities.”
Airlines for America, a lobbying group for airlines like American and Delta, celebrated the lack of implementation of the new rules in a statement:
“We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers,” said a group spokesperson. “We look forward to working with DOT on implementing President Trump’s deregulatory agenda.”
With the new rules for airlines now off the table, travelers should know they still have rights when it comes to flight cancellations and delays — at least for now. For example, the U.S. Department of Transportation still maintains that consumers are “entitled to a refund if the airline cancelled a flight, regardless of the reason, and the consumer chooses not to travel” on its website.
Consumers are also entitled to a refund if their flight is significantly changed or delayed and they decide not to travel. However, “DOT has not specifically defined what constitutes a ‘significant delay,'” they write.
This means you may or may not receive a refund for delayed flights if you choose not to proceed with the updated flight times.
How travel insurance can help
If you’re worried about the rollback of yet-to-be-implemented protections, credit card travel insurance can offer some peace of mind. Certain types of coverage can reimburse you for additional expenses related to travel delays, including unplanned hotel stays and meals you have to pay for while you wait for your flight to depart. Some travel insurance coverage offered through credit cards can even pay for extra expenses you incur while you wait for your bags, like clothing, toiletries or charging cords for your electronics.
The best credit cards for travel insurance even offer robust coverage for trip cancellations and interruptions, which can be worth up to $10,000 per covered traveler and $20,000 per trip with premium travel credit cards such as the Chase Sapphire Reserve(R).
You can also purchase a comprehensive travel insurance plan that includes coverage for trip cancellations and interruptions, travel delays, lost luggage, delayed baggage, emergency medical expenses, and other travel mishaps.
Conclusion
While the new airline rules proposed by the Biden administration were viewed as a significant win for consumers, the Trump administration has opted not to move forward with their implementation. This decision is consistent with the current administration’s broader goal of deregulation, which often involves reviewing and revising rules from the preceding administration. In fact, a stated White House policy is that agencies must identify at least ten existing rules to be repealed for every new regulation they propose.
Since it seems unlikely that rules for air travel will become more favorable for consumers in the near future, consumers should focus on securing coverage for losses on their end. For the most part, this means purchasing travel insurance or getting coverage through a travel credit card. That way, you’re covered no matter what.
