A new study from Upgraded Points examining 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, shows that Nashville BNA Airport would have had to pay $48 million in refunds if the new rule had been in effect last year.
The new rule at the center of the conversation 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 airport in Nashville ranks number 29 on the list of airports across the country and BNA may be looking at $493 in refunds per flight under the new Department of Transportation rule. The number of flights affected by the new rule totals a little more than 2,440 flights. According to UpgradedPoints.com, 2.5% of flights are expected to be impacted by the new rule.
The overall number of refunds is expected to equal around $5 billion, which means that more than 214,000 flights will be affected by the new DOT rule. That adds up to 3% of all domestic flights being impacted by the DOT rule.
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.
These are a few highlights from the report,
which display stats for Nashville International (BNA):
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Looking at 2023 flight data, 3% of domestic flights—a total of 214,875—would have been affected by the DOT regulation change.
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Approximately $5 billion in domestic airfares could have qualified for automatic refunds in 2023 had the new rule been in effect.
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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.
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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.
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The new DOT regulation would have impacted 2.5% of the domestic flights at Nashville International (BNA).
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As a result, affected BNA passengers would have been entitled to an estimated $48 million in refunds had the new rule been in effect last year—the 2nd least of any large hub U.S. airport.
According to the details provided by UpgradedPoints.com, Data from the U.S. Bureau of Transportation Statistics in 2023 indicates that around $5 billion in domestic airfares could have qualified for automatic refunds last year. Major carriers like United ($1.33B), American ($1.27B), and Delta ($1.09B) could face billions of dollars in refunds due to domestic flight cancellations and delays. These 3 carriers alone accounted for nearly 66% of canceled or significantly changed flights in 2023. Even low-cost carriers such as Spirit ($160M), Frontier ($114M), and Allegiant Air ($50M), despite having lower estimated refund amounts, would still experience a substantial financial burden.
