S. 5446: Cash Refunds for Flight Cancellations Act

This bill would require airlines and certain ticket sellers to give passengers cash refunds in more situations than current law may require.

What triggers a refund

• Cancelled flights: If an airline cancels a flight, the passenger can get a full cash refund, including taxes and added fees, if the passenger does not accept another flight, a voucher, or similar compensation.
• Significantly delayed or changed flights: If a flight is delayed or changed enough that it meets the bill’s definition of “significantly delayed or changed,” the passenger can get a full cash refund if they do not accept the altered flight, a rebooking, or an offered voucher/credit.
• The bill says a flight is at least “significantly delayed or changed” if the passenger arrives at least 3 hours late on a domestic flight or 6 hours late on an international flight.
• Passenger-initiated cancellations: If a passenger cancels a ticket at least 48 hours before departure, the airline or ticket seller must offer a full cash refund, including taxes and fees.

How and when refunds must be paid

• If the ticket was bought with a credit card, the refund must be issued within 7 business days after the refund is requested.
• If the ticket was bought with cash or another payment method, the refund must be issued within 20 days after the refund is requested.
• For passenger-initiated cancellations, the refund must be provided within 30 days after the passenger cancels.

What counts as a request for a refund

The bill treats a refund as requested in several situations, including when a passenger refuses the cancelled, delayed, or changed flight; refuses rebooking; refuses a voucher or credit; or does not respond by the time the flight departs.

Rules for vouchers and credits

• Airlines may still offer a voucher, credit, or other compensation, but only as an explicit alternative to the cash refund.
• The passenger must be clearly told about the offer and their right to choose the cash refund instead.
• Any voucher or credit offered instead of a refund must be usable without an expiration date.

Notice requirements

Airlines, foreign airlines, and ticket agents would have to update their systems so passengers are notified of their right to a refund. Before selling a ticket, carriers or ticket agents would also have to disclose in writing that a passenger can cancel within the bill’s rules and receive a full cash refund.

Who the bill covers

• U.S. and foreign airlines on flights to, from, or within the United States.
• Certain large passenger airlines, defined as those with more than $1.5 billion in operating revenue in the prior year, with the threshold adjusted for inflation starting in 2028.
• Ticket agents would be brought under the same rules within one year after enactment.

Penalties

Violations would be subject to civil penalties under existing federal aviation law.

Relevant Companies

• DAL — Delta Air Lines could face higher refund obligations and administrative costs for cancelled, delayed, or changed flights.
• AAL — American Airlines could be required to issue cash refunds more often and more quickly under the bill’s standards.
• UAL — United Airlines could see similar changes in refund practices and customer notification requirements.
• LUV — Southwest Airlines could be affected by the expanded cash refund rules and disclosure obligations.
• JBLU — JetBlue could be impacted by the bill’s refund timing and ticket-change requirements.
• ALK — Alaska Air Group could face added refund and compliance costs for qualifying disruptions.
• ULCC — Frontier Group could be affected by the requirement to provide cash refunds rather than only credits in some cases.
• SAVE — Spirit Airlines could be directly impacted by the bill’s refund rules and any limits on expiring vouchers.
• EXPE — Expedia Group, as a major ticket seller, could need to adjust refund disclosures and processing if ticket agents are covered.
• BKNG — Booking Holdings could be affected through its travel booking and ticket-agent operations.
• TCOM — Trip.com Group could be impacted if its ticketing services are subject to the new ticket-agent rules.