In September 2025, the Department of Transportation withdrew a proposal from the Biden Administration that would have required airlines to give passengers cash compensation and reimbursement for lodging, meals, and rebooking costs.
The proposal aimed to address carrier-caused slowdowns and ensure that passengers receive appropriate compensation, bringing it more in line with Europe’s consumer protections for airline passengers.
Under this plan, airlines would have been obligated to shoulder specific expenses on behalf of affected passengers, while also providing compensation for the inconvenience caused by flight delays and cancellations. This initiative not only sought to prioritize the well-being of travelers but also could have reinforced the government’s dedication to fostering a more customer-centric airline industry.
While the Department of Transportation collected public comments, major airlines opposed the plan arguing that it would increase airfare prices and would be burdensome, which concluded with the DOT withdrawing the proposal.
With the reversal, it is important to know your rights as a passenger, and what actions you can take in case you experience a flight cancellation or delay caused by airline-related issues like fueling, maintenance, understaffing, cabin cleaning, and baggage loading.
Will I Get a Refund for My Canceled Flight?
Regardless of the reason for cancellation, you may be entitled to a refund and if you choose not to travel anymore or accept travel credits, vouchers, or other forms of compensation offered by the airline. This also includes people who purchased a non-refundable ticket.
Additionally, airlines are required to notify you about flight cancellations or significant delays and your right to a refund, according to the U.S. Department of Transportation.
If you also purchased add-ons for your flight such as WIFI or seat upgrades, you may be reimbursed a cash refund since the airline could not provide those services.
What Rights Do I Have if My Flight is Delayed?
Airlines may give a traveler a refund if the airline significantly delays or changes a flight and if they choose not to travel or accept travel credits, vouchers, or other forms of compensation offered by the airline. However, most offer reasonable accommodations or vouchers for travelers due to unforeseen circumstances. You can also ask to be rerouted to another airline if one is available, however they may not compensate you for any additional fees. Check with the ticket agent for options.
If your flight has been delayed and you have to change your travel plans or miss other flights, the DOT created an Airline Customer Service Dashboard that will quickly tell you what rights you have from your airline provider. The dashboard addresses the commitments airlines have made for families with young children, current service members, and controllable cancellations or delays. These controllable cancellations or delays are mechanical issues, staffing shortages, or delays in restocking supplies, inspections, fueling, or baggage handling. Delays or cancellations caused by weather or security concerns are not included, nor do they count.
Does Trip Insurance for Flights Cover Cancellations or Delays?
Anything that is caused by the airline itself would not be typically covered by a trip insurance cancellation policy unless the airline failed to offer any kind of compensation. However, if you experience any other covered reason by trip insurance that would force you to cancel your entire trip including your flight, you may be reimbursed by your insurance provider. Those reasons include:
- You, your travel companion, or a dependent gets sick or injured and you have a doctor’s note
- Death of a travel companion or family member
- Damage to your house in a natural disaster, such as a flood, fire or earthquake
- Complete cessation of travel services due to strike
- Terror strike in your destination country
- You or your companion are affected by a termination or a layoff
- Inclement weather
- You or your travel companion becomes pregnant and is not allowed to travel during pregnancy
- You or your travel companion is summoned to appear in court
Trip delay coverage, another benefit of trip insurance, can also help cover your additional hotel stay, meals, and transportation connected to the delay if your airline does not offer such coverage.
Many trip insurance policies have hidden benefits that some travelers might not know about, such as Cancel For Any Reason (CFAR) coverage. CFAR can also help you at least recoup up to 75% of your nonrefundable, prepaid costs in the event of a cancellation or delay. Read more about how trip cancellation insurance covers unforeseen events here.
Best Trip Insurance Plans
We asked our team of licensed travel insurance experts what the best trip insurance plans are for trip cancellations and delays, and they have recommended the following:
Contact Our Customer Service Team for More Information
If you find that your airline does not offer compensation for significant delays or cancellations, you can count on travel insurance to offer sufficient coverage. Need help deciding on what travel insurance coverage plan is right for you? Have a general question about travel insurance plans? Our Customer Success Team is happy to help.
