S 5446: Cash Refunds for Flight Cancellations Act

S 5446 in plain English: This bill would require airlines to provide cash refunds to passengers when flights are cancelled, rather than offering vouchers or travel credits as alternatives. It appears to apply to air carriers with operating revenues exceeding $1,500,000,000 in the previous year, as reported by the Bureau of Transportation Statistics.

Stated purpose

The bill aims to require airlines and ticket agents to provide full cash refunds — including taxes and fees — to passengers when flights are cancelled or significantly delayed or changed, and to give passengers the right to cancel their own tickets for a full cash refund up to 48 hours before departure.

Key points

• Requires airlines to give cash refunds for cancelled flights instead of vouchers or credits
• Applies to air carriers with annual operating revenue exceeding $1,500,000,000

Arguments supporters make

• When airlines cancel or delay flights, passengers deserve their money back in cash — not vouchers that may go unused or expire — so this bill puts consumers on equal footing with the airlines.
• Requiring cash refunds within strict deadlines stops airlines from holding onto passengers' money indefinitely and discourages them from using flight disruptions as a way to lock customers into future purchases.
• Passengers who cancel 48 hours in advance give airlines enough time to resell the seat, so a full refund in that window is fair to both sides and removes financial risk from travelers who have emergencies or changing plans.

Arguments opponents make

• Mandating cash refunds for passenger-initiated cancellations up to 48 hours before departure could force airlines to raise ticket prices across the board to offset the added financial unpredictability, hurting all travelers including those who never cancel.
• Airlines argue that vouchers and credits are a legitimate alternative that many passengers prefer, and heavy-handed federal rules may reduce flexibility in how carriers and customers negotiate disruption compensation.
• Small carriers and ticket agents may struggle with the compliance costs of overhauling notification systems and refund processes within the bill's deadlines, potentially disadvantaging them compared to larger airlines with more resources.

Tradeoffs

The bill gives passengers stronger financial protections and cash certainty in the event of disruptions or cancellations, but may shift costs back onto airlines in ways that could affect ticket pricing or the range of compensation options available to travelers.

Current status in Congress: In committee.

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