Right pathway: Understanding flight refunds

Last updated on March 19th, 2026

If you have flown somewhere in Australia recently, there is a good chance you have experienced a delay, cancellation or sudden schedule change. While airlines might dismiss these disruptions as part of doing business, the impact on travellers can be serious, even before they start chasing flight refunds.

Hundreds of passengers are regularly hit by flight cancellations and delays across the country, negatively affecting tourism and business, not to mention potentially missing important events, such as business meetings, weddings or funerals.

According to the Bureau of Infrastructure, Transport and Regional Economics (BITRE), which monitors domestic performance, Australian airlines have a long-term average on-time arrival rate of 80.7 percent and on-time departure of 81.8 percent. The 2024 to 2025 figures are lower – 76.3 percent for on-time arrivals and 76.8 percent for on-time departures. The rate of cancellations was higher, 3.5 percent compared with the long-term average of 2.2 percent.

Given the flow-on effect of these delays and cancellations, many of you will be asking the same questions: Can I get a flight refund? Can I get a full refund if my flight is cancelled? Do I lose my money if I cancel a flight? Can I get a cash refund for a cancelled flight?

What are my rights in regard to flight refunds?

Under Australian Consumer Law (ACL), flights are a service and come with consumer guarantees. One of the most important is the guarantee that services will be provided within a reasonable time. This applies to flights within Australia, leaving Australia and booked through an Australian website.

This matters because airline compensation policies, often buried in conditions of carriage, do not override your legal rights. An airline might say it only offers vouchers, but that doesn’t automatically make it lawful.

The Australian Competition and Consumer Commission (ACCC) is clear: “Airlines have compensation policies that set out what they’ll do if a flight is delayed or cancelled. But these policies don’t replace consumer guarantees that automatically apply”.

 

 

In other words, your rights under ACL trump an airline’s compensation policy.

The Australian Government is also developing specific aviation consumer protections, which supporters say will complement consumer law. However, airlines say the reforms are unworkable and the proposed Aviation Consumer Protection Authority is unnecessary.

Former ACCC chief Graeme Samuel, now the chairman of airline industry group A4ANZ, says the proposals overlap existing consumer protections and are too complex.

While they are yet to be introduced into legislation, it is important to be aware of your existing consumer rights.

When can I get a refund for a delayed or cancelled flight?

If there is a major change to your flight, such as a significant delay or a cancellation that is caused by the airline, that affects your travel plans, the airline should respond appropriately. That could mean putting you on the next available flight or offering a credit or a refund.

Many Australians assume flights aren’t refundable unless they buy an expensive ticket where that option is clearly outlined.

However, you may be entitled to a refund, replacement flight, or other remedy when:

• • Your flight is cancelled
  • Your flight is delayed so long it no longer serves its purpose (for example, missing a wedding, cruise or work event)
  • You’re rebooked onto a significantly later flight without reasonable alternatives
  • You’re denied boarding due to overbooking

For cancelled flights, airlines should generally offer:

• • Rebooking on the next available flight
  • A refund (often a full refund, not vouchers, unless you choose otherwise)

It's important to remember that if the issue is caused by the airline (e.g. maintenance or staffing), you are likely entitled to a refund. However, weather and air traffic control are considered "out of their control". The ACCC notes that refunds must be provided in the original form of payment, unless the consumer agrees otherwise.

 

 

What if I have a non-refundable ticket?

A ‘non-refundable ticket’ can confuse travellers as the name implies they can’t get any money back.

A ticket can be non-refundable if you change your mind or cancel for personal reasons. But if the airline fails to deliver the service within a reasonable time, that label doesn’t automatically protect them. In other words:

• • You change your mind – airline rules apply
  • The airline fails to deliver – consumer law applies

If you bought your tickets through a travel agent or booking platform, airline fare rules generally take precedence.

Travel agents should act on your behalf to facilitate the refund, not decide eligibility – confirming whether you’re entitled to a refund, liaising with the airline and returning the funds once received. The Australian Travel Industry Association (ATIA) CEO Dean Long says an agent cannot provide more than what the airline or supplier offers.

If you’re offered flight credits, the ATIA recommends:

• • Getting the offer in writing – ensure it includes all relevant conditions
  • Confirming expiry dates and restrictions – it is your responsibility to use the credit before it expires
  • Keeping records of remaining balance of your credit – ask the agent for written clarification if you are unsure of your balance

Travel insurance can also help in some circumstances, such as unexpected cancellations or expenses during long delays.

However, most insurers will ask you to seek a refund or replacement from the airline first. Whether or not you will be covered depends heavily on your insurer’s product disclosure statement (PDS), waiting periods (often six hours) and exclusions.

 

 

What if I am refused a refund or only offered a voucher?

One of the most common complaints from travellers is the airline’s refusal to offer a refund. Instead, they often only provide vouchers for food or towards hotel accommodation as compensation for delays or cancellations. They may:

• • Insist delays were “outside their control”
  • Offer vouchers instead of refunds
  • Stop responding altogether

This is why it is important to know your rights before you fly. Reading airline terms before booking, keeping records, and understanding consumer guarantees puts you in a far stronger position if something goes wrong.

Flight disruptions are stressful enough. Getting your money back shouldn’t be harder than missing the flight itself.

If you know you are entitled to a flight refund, or even if you aren’t entirely sure, you don’t have to settle for a voucher. There are several things you can do to escalate the issue:

• • Contact your state consumer protection agency
  • Report misleading conduct to the ACCC
  • Use industry services like the Airline Customer Advocate - it is free to eligible customers
  • Seek help preparing a formal dispute