The new rules also call for "timely customer service during and after periods of widespread flight irregularities".
The proposals would require airlines to proactively inform passengers they have a right to receive a refund when a flight is cancelled or significantly changed.
A "significant" change and cancellation that would entitle a consumer to a refund would be defined as more than three hours for a domestic flight and more than six hours for an international flight.
The rule would also require airlines to provide non-expiring vouchers or travel credits when people cannot travel because they have Covid-19 or other communicable diseases.
Airlines which receive significant government assistance in the future related to a pandemic, meanwhile, will have to issue refunds instead of non-expiring travel credits or vouchers when passengers are unable or advised not to travel because of a serious communicable disease.