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Flight Reservations, Cancellation, and Refund Policies in the USA

Flight Reservations, Cancellation, and Refund Policies in the USA

by Flights Doodle
October 16, 2025
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The USA has its own protocols and policies for the civil aviation industry. Its rules and regulations are clearly laid out by the US Department of Transportation (DOT) under the Office of Aviation Consumer Protection (OACP).

Airfares

The DOT encourages US airlines to follow the ‘Full Fare Advertising rule. Airlines and ticket agents must display the total airfare in their advertisements, including the mandatory fees and taxes. Moreover, airlines must include government taxes and mandatory carrier-imposed fees for “free” fare advertising for mileage rewards.
Travelers also enjoy protection under the 24-hour reservation rule. According to DOT, all passengers can cancel their tickets within 24 hours of booking and are entitled to a full refund. They can hold a reservation for 24 hours without payment. The rule applies only if the purchase is at least seven days before flight departure.

Delays and Cancellations

Refund or compensation for delays and cancellations depends on various factors, such as the reason for the delay, emergencies, ticket price, class of travel, and airline loyalty programs. Although airlines are not federally liable to compensate passengers for delays due to poor weather or operational issues, they must provide accurate and timely updates to their passengers. They should also facilitate rebooking passenger flights and, in some cases, pay for accommodation. In the event of flight cancellation, passengers can reroute or get a full refund. Passengers are not entitled to compensation if the delays are due to uncontrollable events.
DOT regulations also specify how long an aircraft can remain at the gate or on the tarmac. A plane can be on the tarmac for three hours for domestic flights and four hours for international flights. During the delay, airlines must provide food, water, at least one working restroom, and medical access if necessary.

Overbooking and bumping

The Department of Transportation (DOT) allows overbooking, which allows the airline to sell more tickets than it has seats. This practice allows the airline to maximize the physical occupancy using passenger seats. If all passengers (including the overbooked ones) present themselves for boarding, the airline must first ask volunteers to give up their seats in exchange for compensation. If a passenger is bumped involuntarily, the airline must provide the passenger with a written notice stating the right to compensation and the type of compensation that must be provided at the airline’s discretion. The compensation is determined at the time of the completion of a flight schedule, instead of the arrival time for a passenger. It is further based on the amount of delay a passenger could expect during the course of the disrupted journey.

Luggage Policy and Responsibilities

The DOT lays out luggage responsibilities and what procedures should be taken in the event of a lost, delayed, or damaged piece of luggage. Under federal guidelines, the airline is responsible for compensating the passenger for luggage issues (up to a specified amount, approximately $4,700 for luggage on a domestic flight). Passengers should report luggage issues fully to the airline at the airport and report luggage issues with documentation, such as receipts, for filing a claim with the airline. For airplane trips that fall under international travel, the airline’s liability is governed by the Montreal Convention, which has a different liability structure than for domestic travel.

Passengers with Disabilities

Much of “Fly Rights” details the Air Carrier Access Act (ACAA) rights. Airlines are prohibited from discriminating against persons with disabilities. They must provide reasonable assistance to those passengers, including assistance in boarding the aircraft, accessible lavatories on certain aircraft, and accommodations for service animals or those with other mobility aids. Persons with disabilities can file a complaint with the DOT regarding anybody acting in a discriminatory manner.

Filing Complaints and Seeking Help

Suppose a traveler encounters concerns where no resolution has been achieved. In that case, the traveler must first contact the airline’s customer service department. Airlines must acknowledge a written complaint within 30 days and respond to the complaint within 60 days. If passengers are unsatisfied, their complaints can be elevated to the DOT’s Aviation Consumer Protection Division. The Division monitors violation patterns and enforces rules and regulations that govern airline industry practices. In some dispute cases, travelers can seek compensation through a small claims court.

Refund Scenarios

Flight cancellation: If the airline cancels a flight and the traveler does not choose to take it, they are eligible for a full refund.
Significant schedule change or delay: If the change is substantial, the traveler opts not to fly.
Downgrade in service: If a passenger is involuntarily moved to a lower ticket class, he is entitled to fair compensation.
Unused optional services: Such as baggage fees, seat upgrades, or in-flight Wi-Fi, when these cannot be provided under specific disruptions.
Lost baggage: If the airline officially declares a checked bag lost.
Fully refundable tickets: If travelers do not use a fully refundable ticket, they are still entitled to a refund.

It also clarifies when refunds generally are not required:
Non-refundable tickets: If a traveler voluntarily cancels the flight or cannot fly for personal reasons (illness, missing flight, etc.), they will not be compensated. However, there are a lot of options available on different airlines that can cater to specific needs and refund some or all amounts.
Dissatisfaction with service: Poor service or discomfort does not automatically warrant a refund.
Incidental costs: The refund rule does not cover costs such as hotels, meals, or ground transportation incurred due to delays or cancellations.

Conclusion

In the new commercial environment, consumers must play an active role and choose decisively. All the airlines follow the general instructions passed to them by DOT. Still, a large variation can be seen in different airlines regarding fair prices, services, and loyalty plans. Customers must prepare for their travels in advance and be aware of the airline’s policies to get the most out of them and have a comfortable journey.

Flights Doodle

Flights Doodle

Flightsdoodle is a Pennsylvania based, online travel agency that can help you to find the best flight deals for both domestic and international travel.

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