What to Know About the Department of Transportation's Rule That Lets You Cancel a Flight for Free
You can cancel your flight for free thanks to this 24-hour policy.
If you just booked a plane ticket for your next vacation but are having second thoughts about your flight choice, you aren’t entirely out of luck.
The Department of Transportation has a rule that essentially allows any traveler to cancel their flight for a full refund within 24 hours of booking. Still, there are some stipulations to be aware of. Here’s everything you should know about the 24-hour rule, and what to do if you have to cancel after this window.
The 24-hour Flight Cancellation Rule
According to the Department of Transportation (DoT), for “airline tickets that are purchased at least seven days before a flight’s scheduled departure, airlines are required to either allow passengers to cancel their reservation within 24 hours and receive a full refund without a penalty, or allow passengers to reserve a ticket (place it on hold) at the quoted price without paying for the ticket for 24 hours.”
Note that airlines are not required to offer both options. So, if you see a 24-hour hold option when you check out, know that it could mean you cannot cancel your flight for free after booking.
The rule also states that you must receive a refund, not an e-credit, if you cancel during this window. It must be issued within seven business days for credit card transactions or 20 business days for cash or check payments.
Related: What to Do If Your Flight Is Canceled, According to a Travel Expert
Exceptions to the Rule
Airlines must comply with the 24-hour booking policy. However, they are not required to make changes free of charge during this window. If you want to move your flight to a different date, change your flight time, or fix a misspelled name, you might still need to pay for this. In this case, it might be better to cancel your flight within the 24-hour window for a full refund and rebook your flight with the correct information. Note that there may be a fare difference, even in such a short time frame.
A major caveat to the 24-hour rule is that it does not apply to any ticket booked through a third party. So, you don’t automatically have a 24-hour risk-free cancellation for flights booked through your favorite credit card’s travel portal or a travel agent. Many online travel agencies or travel portals will still offer this option to encourage users to book through them, but since it isn’t a requirement, read the terms and conditions before booking.
If you book your flight less than seven days before departure, you aren’t covered under the DoT’s rules. However, each airline has its own policy. For instance, American Airlines says you can get a full refund 24 hours after booking as long as you book at least two days before your flight — that’s five days more lenient than the DoT. United sticks with the DoT’s policy of one week prior to your flight, while Delta says that the cancellation request must be made by midnight the day after the ticket was purchased or midnight of the departure date of the first flight (whichever comes first).
What to Know About Canceling Your Flight After 24 Hours
If you are outside the 24-hour window, your options depend on the airline's rules for the fare class you purchased. The DoT says you are entitled to a refund in the following circumstances:
The airline cancels the flight
There is a schedule change or significant delay
If there is a class of service change
If you paid for an optional service and did not receive it
If you paid a baggage fee and the airline declares it as lost
If you purchased a fully refundable ticket
As you can see, none of these situations (outside of booking a fully refundable ticket) allows you to cancel your flight for a refund after 24 hours simply because you want to. You are not entitled to a refund if you booked a non-refundable ticket and cannot fly for personal reasons.
If you think you might need to cancel after this window, it can be helpful to book a refundable ticket. However, post-pandemic, you’re much less restricted than you used to be.
For instance, if you booked a main cabin or above ticket with Delta Air Lines, and your flight originates in the U.S., you can cancel your flight to receive an eCredit for use on a future flight. If you fly somewhat regularly, the eCredit is usually valid for at least a year, so it shouldn’t be challenging to use. If you booked a basic economy ticket, or your flight originates in Europe or Central or South America, you can still cancel for a refund minus a cancellation fee.
Although you won’t get money back to your original form of payment if you cancel after 24 hours, you won’t lose that money entirely. The only way to guarantee a full refund to your original form of payment is to book a refundable fare.
Related: A Guide to the Department of Transportation's Airline Refund Rules
Bottom Line
In my experience, it’s much easier to get a refund of points and miles than cash. If you book an award redemption with an airline, you can often cancel your ticket any time prior to departure and receive a refund of your miles. I’ve done this countless times for various reasons, including finding a cheaper flight with the same airline. Still, read the terms and conditions, and don’t assume you’ll get your miles or cash back regardless of the situation.