Why Do Airline Refunds Take So Long? (2025 Guide for U.S. Flyers)

Have you ever waited weeks (or months) to get your money back after a cancelled or changed flight? You have likely wondered, Why do airline refunds take so long? This is because of a lot of moving parts, such as airline systems, third-party agents, banking schedules, and compliance checks. The great news is that U.S. regulations were revised in 2024-2025 to ensure that most refunds become automatic and faster. This guide outlines the regulations that work in your favor, the real-life reasons behind the delay, and the easy measures to accelerate it.

The New Baseline: Automatic Refunds (What The 2024-2025 Rules Say)

As per the U.S. Department of Transportation (DOT) regulations in 2024, airlines will automatically provide cash refunds on cancellations, significant schedule changes (long schedule, 6+ hours international), excessive delays (3+ hours domestic, 6+ hours international), or involuntary downgrades. Extra refunds can be made in cases of missed seat selection, faulty Wi-Fi, or late bags (12+ hours domestic, 15-30 hours international). Refunds are required to be done within 7 days (credit cards) or 20 days (other payments).

Main Reasons for Delayed Refunds?

With improved rules, actual bottlenecks still exist:

• Complex back-end systems: airlines handle millions of transactions in old reservation systems (GDS), multiple ticket “coupons,” fare rules, and partner airlines. With a mere cancel, various systems can be contacted before money transfers. 

• Third-party bookings (OTAs and travel sites): In case you made a booking via an online travel agency, the airline usually forwards the refund to the agency, and the agency forwards it to you. 

• Bank schedules and payment rails: Once an airline issues a refund, card networks and banks still require time to post funds. DOT sets the initiation window (7/20 days), not how fast your statement reflects it—another reason travelers ask why airline refunds take so long.

• Volume spikes and staff load: Holiday storms, ATC problems, or large schedule changes generate refund surges. Name mismatches, partial ticket use, ancillaries, etc., are checked manually, which slows down queues.

• Cash flow and audit checks: Airlines and agencies audit tickets (was it flown? partially used? exchanged?) to avoid cases of double refund or fraud. 

Expected Refund Timelines

• The airline must issue it within 7 business days; your card can reflect it a little later depending on your bank.

• Other payments, such as debit, cash, miles, taxes/fees, and vouchers you paid extra for, are refunded within 20 days.

• In case you used an OTA, add their internal processing time once they are paid by the airline. This is the common practical explanation for why airline refunds take so long in the case of agency-booked trips.

Refund of Baggage fee

• Domestic: When checked bags are delivered to your gate at least 12+ hours later, the checked-bag fee is automatically refunded (for the first checked bag).

• International: 15-30 hours, depending on the length of flight. These are fee refunds, which are independent of any other compensation that your airline may provide.

How to get your refund faster?

1. Quick answer: In case you do not like the new itinerary, make it clear and ask to be refunded the original payment (not voucher). Airlines have no choice but to respect this; you do not need to take credit.

2. Keep to a single channel: When you booked through an OTA, work through the OTA so that the money is sent back through the same channel it was charged. Several channels may lead to duplication and delays.

3. Ready with the proofs: the locator, ticket number (13 digits beginning with an airline code), and the specific extras you purchased (seat, bag, Wi-Fi) are easier to verify.

4. Time taken: After 7/20 days, when the refund has not arrived, escalate—request evidence of refund initiation (ARN/RRN) to trace with your bank. This is usually the point at which most people pose the question of why airline refunds take so long.

5. Register with DOT when necessary: When stalled or refused by the airline/agent, file a brief complaint with Aviation Consumer Protection, DOT. After this step, response rates go up.

Bottom line

New rules now impose automatic refunds for cancellations, large delays, downgrades, and non-delivery of extras—and they have strict time limits (7/20 days). But the reason why airline refunds take so long in practice is still explained by legacy systems, third-party handoffs, and banking rails. Book flight tickets smartly, and never think twice about escalating past the deadline. When you know your rights, you wait less—and get what you are due. 

Frequently Asked Questions

Ques: How long do cancelled flight refunds take?

Ans: The usual time that flight refunds take is 7-20 days, based on the payment method and the policy the airline has.

Ques: What can I do if my refund is taking too long?

Ans: Contact airline customer support, escalate through complaints, or use a credit card company or a direct approach to the aviation authorities.

Ques: Do I have to accept airline vouchers instead of refunds?

Ans: No, in most rules, cash refunds can be requested by the passengers; vouchers are not mandatory.

Ques: Are baggage fees refundable?

Ans: Yes, baggage charges are refundable when your bags were not delivered as stated.

Ques: What can I do if my airline refund is delayed?

Ans: Contact the airline customer service, document communication, and escalate to regulatory authorities if the refund remains unresolved

Ques: What if I booked through an online travel agency (OTA)?

Ans: When you make a reservation using an OTA, the airline ticket price is often refundable, although the brokerage or service fee of the OTA is not. Airlines decide on ticket refunds, whereas the OTAs usually take their service fees even when the flight is cancelled.