Friendly skies: Automatic cash refunds and travel changes take off

The winter holidays are a big time for travel, and there are new airline rules that can improve the overall experience. More than one quarter of Americans (28%) plan to take a trip during this year’s holiday season, according to an Empower study.

Refunds taking off

The U.S. Department of Transportation created a new rule that went into effect Oct. 28 that requires U.S. airlines to give travelers automatic cash refunds (not just airline vouchers) for a variety of flight-related changes.¹

Here’s a look at which travel switch-ups would be covered:

Flight changes – including delays: A “significant change” to a flight would trigger an automatic refund. To qualify, there must be a delay of 3 or more hours for a domestic flight or at least 6 hours for international travel. If the departure or arrival endpoints change, or if a connection is added, travelers get a refund.
Service gaps: Add-ons that travelers may pay for on travel days – like in-flight Wi-Fi and airport lounge access – fall under the new rule as well, and people can request refunds if the service doesn’t deliver. Travel extras have been holding more weight in travel plans – 81% of air travelers last year said that Wi-Fi was important to their on-board experience,² and more than half of frequent flyers have been finding comfort in airport lounges.
Bag lags: Refunds are available on bag fees if a bag is delayed for more than 12 hours for domestic flights, or 15-30 hours for international. These costs have been adding up for travelers and companies alike: Airlines collected $33 million in bag fees in 2023.

Refunds should also be less of a waiting game: For travelers who purchased the ticket with a credit card, they would receive a refund within 7 business days. That refund period extends to 20 calendar days for those who used another payment method.

Passport speed run

Renewing a passport will be faster with a new U.S. Department of State online program that launched in September. In just a couple of months, more than a million people have applied to renew their passports using the new process.³

People can use the system only if they meet certain criteria. Check out a few key points from the full list of requirements:⁴

You live in the United States, and the passport being renewed was issued between 2009 and 2015.
You don’t need to change personal details like name, birthdate, gender, or birthplace.
Travel is at least 6 weeks away; the online system only works on a routine service timeline.
You can upload a digital image as the passport photo.

Speedy approvals are needed to meet demand. From January to late October 2024, the federal department processed 24.5 million passport books and cards, which surpassed the entire amount completed in 2023.³

Applying for a passport online costs the same as a paper application, and both systems follow the same processing times for routine service.⁵

Passports requiring expedited service can’t be renewed online, and there’s a $60 fee assessed in addition to the processing fee.⁶ It can pay to plan ahead, but sometimes the trade-off is needed, like for the 37% of Americans who think that saving time is more important than saving money, according to Empower research.

Other changes in the works

Additional developments for air travelers are on the horizon for 2025.

The European Travel Information and Authorization system is set to launch in the first half of next year. Under the new setup, American citizens wanting to visit any of the 29 member countries will need to register ahead of time or they could not be allowed to enter.⁷

May 2025 marks a long-standing deadline for Americans to get a Real ID, an enhanced version of a driver’s license that complies with federal security standards for identification.⁸ However, enforcement at airports could be phased in over the next couple of years.⁹

A smoother ride

Staying updated on the latest news and rules could help people save on their trip costs, especially for those traveling on a budget.