SAT Flyers could see an $18M in Refunds Under New DOT Rule, But will You Actually Get it?
A new study from Upgraded Points looking at the U.S. airlines and airports most impacted by the new Department of Transportation (DOT) rule, which requires prompt and automatic flight refunds for canceled or significantly changed flights. The study explores what the financial fallout would look like using 2023 flight data.
For San Antonio? The study shows that “affected SAT passengers would have been entitled to an estimated $18 million in refunds had the new rule been in effect last year.”
The new rule:
The new rule mandates airlines to issue refunds in the original payment method for canceled or significantly changed flights (diverted or delayed for more than 3 hours), delayed baggage delivery, and undelivered services. Unless passengers explicitly opt for alternative compensation, airlines will no longer be allowed to issue refunds in the form of travel vouchers or credits—both of which often have expiration dates. Airlines have until October 28, 2024 to implement these changes.
The fallout:
While the new regulation provides some peace of mind for air travelers on the surface, the rule’s overall financial impact on airlines and customers is unclear. Airlines might respond by adjusting their operations, pricing strategies, or a combination of both. Airlines for America, for example, says the new regulations could reduce competition and ultimately drive up prices for consumers.
To identify the airports that are most impacted, researchers analyzed domestic flight data for 2023 to calculate refund estimates under the new DOT rule. The complete analysis includes a breakdown of refund estimates for each major U.S. airline and over 350 U.S. airports.
These are the main takeaways from the report, highlighting some key stats for San Antonio International (SAT):
- Looking at 2023 flight data, 3% of domestic flights—a total of 214,875—would have been affected by the DOT regulation change.
- Approximately $5 billion in domestic airfares could have qualified for automatic refunds in 2023 had the new rule been in effect.
- Major carriers like United, American, and Delta would have each been on the hook for over $1 billion in automatic refunds last year due to domestic flight cancellations and delays.
- Even low-cost carriers with lower estimated refund amounts—such as Spirit ($160 million) or Allegiant ($50 million)—would still experience a substantial financial burden.
- The new DOT regulation would have impacted 2.3% of the domestic flights at San Antonio International (SAT).
- As a result, affected SAT passengers would have been entitled to an estimated $18 million in refunds had the new rule been in effect last year.
We will continue to update you as information becomes available.
