What you need to know about airline refunds, delays

Major airlines including United, Delta and American Airlines grounded flights Friday morning amid a global IT outage that affected their operations, causing delays for travelers.

“You can imagine the mass chaos unfolding everywhere,” said Eric Napoli, chief legal officer of AirHelp, which helps passengers claim compensation for delayed or canceled flights.

“Any kind of outage, the congestion [it has] on so many flights it’s unbelievable,” he added.

Passengers affected by flight disruptions may be entitled to a refund, hotel or meal voucher or other compensation.

But it largely depends on the airline, travel experts said.

“There’s this kind of gray area where we’re at the mercy of airline policy,” Napoli said.

Experts are also divided on whether the disruption is an event within or outside the airlines’ control — an important factor in determining whether a customer is entitled to any kind of financial compensation.

There is really only one guarantee of an airline’s financial duty: The customers are owed a refund of the ticket price (and fees) if the carrier cancels its flight — regardless of the reason — and chooses not to travel on an alternate flight, according to the US Department of Transportation.

This even applies to non-refundable tickets.

That means customers would get cash back on a canceled flight if they choose not to fly and also be denied an alternative, such as a rebooking or a flight voucher, said John Breyault, a travel expert at the National Consumers League.

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Passengers are also entitled to a refund for “significant” schedule changes or delays and choose not to fly, the DOT said.

However, DOT does not define “significant.” That determination is based on factors such as the length of the delay and the flight and special circumstances, the agency said.

From October 28, airlines it must are “immediately” and automatically paying refunds to customers, due to the Biden administration’s rule issued in April. That rule also defines “significant” changes to the itinerary, including delays of three hours for domestic flights and six hours for international flights.

However, since the rule goes into effect in October, it doesn’t help customers affected by Friday’s outage. They may have to “solidify their relationship with the airline” to claim a refund, Breyault said.

It may be even more difficult for passengers who bought a ticket through a third-party booking site rather than directly with the airline, experts said.

Customers will likely have to deal with that middleman for any kind of financial compensation, Napoli said.

Expedia, for example, said on social media Friday morning “had a high call volume and long wait time due to a global IT outage. If your needs are not urgent, please consider postponing your call and chat to avoid long wait times.”

However, many travelers affected by Friday’s disruption need or want to fly to their final destination, meaning they will not be eligible for a refund.

There are generally no federal guarantees for travelers in such cases. This is where specific airline policy comes into play.

“The airline will fly you to your destination on the next available flight,” said Sara Rathner, travel expert at NerdWallet.

“What can be different [between airlines] it’s how much compensation you might get afterwards, not just for the delays but for any other costs you might incur,” he added.

The website of the Department of Transport describes carriers’ promises to customers in case of cancellation or delays of more than three hours. (Its dashboard outlines policies for 10 major US airlines and their regional operating partners, which account for 96% of domestic passenger air traffic.)

Airlines are “required to deliver” on those promises, the agency said.

All airlines are committed to rebooking passengers on the same airline free of charge. Some will do so on a partner airline, and most will offer a meal and/or hotel stay for long delays or cancellations, Napoli said.

However, the airlines’ commitments only apply to cases within the airline’s control.

A “controllable” flight cancellation or delay can be due to maintenance or crew issues, cabin cleaning, baggage loading or fueling, for example, according to the Department of Transportation.

It’s generally harder for consumers to get any kind of compensation for uncontrollable events like weather, Breyault said.

Experts appear to disagree on whether Friday’s outage should be considered under the control of the airlines.

CrowdStrike, a cybersecurity company, experienced a major outage on Friday related to a technology update. This has affected organizations like Microsoft, which has tried to bring back applications and services used by a huge number of companies — including airlines.

“This seems to have taken some notches away from the airlines,” said NerdWallet’s Rathner. “It’s software they use as part of their operations.”

However, airlines choose their suppliers, Breyault said. One could argue that “a failure of one of their vendors is controllable,” he said.

“I think it’s going to be something that consumers should be aware of,” Breyault said.

Passengers should keep any receipts for unexpected expenses incurred due to a delay or cancellation — such as those for lodging and meals — for financial proof when filing a claim with an airline or travel insurance, for example, Rathner said.

“You might get some of that money back, so don’t throw away those receipts,” he said.