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You might be thinking, Why do airline refunds take so long to process? Here is the exact reason.
Airline refunds take so long to process due to a combination of high refund request volumes, manual processing delays, third-party booking complications, and bank processing timelines. U.S. law requires airlines to process eligible refunds within 7 business days for credit card payments, but real-world cases often exceed this timeline due to internal inefficiencies and systemic backlog.
According to Statista, Fly Big also had the highest flight cancellations in March 2024 among Indian airlines, when more than nine percent of the flights they offered were canceled. Second was Fly91 with a five percent rate of cancellation. The overall percentage of cancellations in all the airlines in the same month was 0.63 percent.
How Long Do Airline Refunds Typically Take?
In the United States, the Department of Transportation (DOT) mandates that:
- Refunds to credit cards must be processed within 7 business days.
- Refunds paid by cash or check must be completed within 20 business days.
But most airlines are keen to lapse official refund deadlines most of the time, and most will say this is because of delays in processing or maintenance problems with the system. These discrepancies show the differences between what was promised and what has been experienced in reality and particularly when there are high volumes of inputs or system bottlenecks. The period required to get a refund can be quite different per airline:
- According to American Airlines, they take 7 days to process the refunds; however, customers report between 14 to 30 days to receive the same.
- Delta Air Lines calculates up to 7-10 business days on the refund schedule, but it may take up to 25 days.
- The processing time noted by United Airlines is said to be between 7 and 20 business days although there are customers who have taken as long as 30 days to get the processing completed.
- Southwest Airlines is more likely to provide a faster solution, promising a refund within 10 days or an immediate solution in some situations; however, in practice, the travelers were waiting up to 7-21 days.
Top Reasons Airline Refunds Are Delayed
Some of the main airline refund delay reasons are:
1. High Volume of Requests
Since COVID-19, flight cancellations and schedule changes have spiked. Even now, airlines are still playing catch-up with backlogged refund claims.
2. Manual Processing
Many airlines rely on human agents to review, approve, and trigger refunds. Limited staffing slows things down, especially during peak travel seasons.
3. Third-Party Bookings
Booking through Expedia, Priceline, or travel agents adds an extra layer. Your request often sits in limbo as the airline and agency coordinate.
4. Bank and Card Processing Delays
Even after approval, banks and credit card companies take 5–10 business days to reflect the credit to your account.
5. Internal Airline Policies
Each carrier has unique refund conditions buried in its fine print. These policies often restrict, delay, or redirect your refund path.
What U.S. Law Says About Airline Refunds?
According to the U.S. DOT, passengers are entitled to a full refund according to the airline’s refund policies USA, if:
- The airline cancels the flight.
- There’s a significant schedule change.
- A passenger is involuntarily denied boarding.
- The airline fails to provide the purchased service.
Airline Tactics That Slow Refunds
- Offering travel credits instead of refunds by default.
- Using vague terms like “under review” for weeks.
- Poor customer service response times.
- No clear escalation path for unresolved refund claims.
What Can You Do If Your Airline Refund Is Delayed?
Step-by-Step Action Plan:
- Contact the airline directly and escalate to a supervisor.
- Keep records: emails, call logs, receipts, and flight cancellation notices.
- File a complaint with the U.S. DOT.
- Dispute the charge with your credit card provider within 60 to 120 days.
- Use social media escalation or find airline executive contacts online.
Credit Card vs. Cash Refunds
One should always book flights with a credit card, which offers chargeback protection in case a passenger is not satisfied with the service or, worse still, the provider is not satisfied with them. More often than not, a credit card belongs to a much faster and secure fund recovery. Airline refund speed will also be dependent on your mode of payment:
- In case of using a credit card, the perfect refund should be 7 business days, however, the actual refund can be 10 to 20 days.
- In case of debit card payments, it will take 7-10 business days to reach the expected, but the real time may take 10-25 days.
- The refunds through cash or check are the most sluggish and they ought to be completed within 20 business days, perhaps even longer than the 30 days.
Refund vs. Voucher: Know the Difference
- A refund means getting your money back directly to your account.
- A travel voucher is a credit you can use with the airline for future travel.
- A refund is often your legal right, especially for cancelled or significantly changed flights.
- Vouchers are usually offered as an alternative to refunds by the airline.
- Choose a refund if you’re unsure about future travel plans.
- Vouchers may seem convenient, but they can come with restrictions, blackout dates, or expiration dates.
How to Avoid Refund Delays in the Future?
The flight cancellation refund process might be stressful, so you should follow these steps to avoid delays in the future:
- Book directly with airlines, not OTAs.
- Choose refundable fares when possible.
- Use credit cards with travel protections.
- Add trip cancellation insurance.
- Read cancellation policies before booking.
To Summarize
Refund recession is a regular occurrence, and in most instances, it can be averted using an effective strategy. According to U.S. law, this is your right to obtain a refund on time in case of cancellation or significant changes to flights. The first would be to book straight away, make the payment using a credit card, and submit complaints where there are some, to speed up your refund. However, if you are a traveler from the USA, and are worried about the flight booking process. Then, Budgetairfares is there to help you, as you can book cheap airline flights to India through our platform.
FAQs
Q1. How long should an airline refund take?
U.S. DOT mandates 7 business days for credit cards, 20 for cash. Actual timelines may vary.
Q2. What if I booked through Expedia or another travel site?
Contact the OTA first. Refund processing may take longer due to third-party coordination.
Q3. Can I file a complaint if I haven’t received my refund?
Yes. File directly with the DOT at airconsumer.dot.gov.
Q4. Will I get a voucher or money back?
You’re entitled to money back, but airlines often try to issue vouchers. You can decline.
Q5. Is there a way to speed up my refund?
Yes, escalate to airline supervisors, document everything, and contact your credit card provider if needed.
