Claiming Compensation for a Delayed, Overbooked, or Canceled Flight in the US and EU

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There are few things in life more frustrating than having your flight delayed or canceled during your travels — especially if you're going on holiday, attending a wedding, or have an important business trip. Not only is it annoying and stressful, but it can turn out to be pretty expensive as well.

I would know first hand, as I ran into this scenario late last summer when taking a direct Volotea flight from Athens, Greece to Palermo, Sicily (Italy). One hour turned into two, which turned into three, and before long I'd been delayed close to four hours before we could finally take off. It left me quite frustrated about the delay in arrival to Palermo, as I planned to meet fellow AwardWallet team member Erik Paquet there for a week of sun tanning and pasta consumption.

Fortunately, there are some protections in place to ensure you don’t get stuck with the bill when irregular operations force you to change plans. There are some big differences in the compensation offered and how bad the situation needs to be before you become eligible for this compensation. If you know your rights, you can avoid worrying about extra, out-of-pocket costs and make sure you receive the full compensation to which you’re entitled.

In this post, we break down the rules and regulations for United States and European Union flights and the compensation you'll receive in the event your flight is delayed, overbooked, or canceled.

When Are You Entitled to Flight Delay Compensation From an Airline?

Your right to airline compensation changes depending on the airline you fly, your departure and destination, and whether you are flying domestically or internationally. In light of the different rules for each country and carrier, we’ve grouped rules by region and the type of flight.

Claiming Compensation on U.S. Domestic Carriers and Flights

Passengers in the U.S. have no blanket protection against delayed or canceled flights like their counterparts in Europe. The US Department of Transport (DOT) regulations state:

“Each airline has its own policies about what it will do for delayed passengers waiting at the airport; there are no federal requirements.”

“Contrary to popular belief, for domestic itineraries, airlines are not required to compensate passengers whose flights are delayed or canceled.”

Credit: Ray Sangga Kusuma/Unsplash

Having said that, you can politely ask airlines to help with food, transportation, and accommodation, but it is up to the airline whether they help out or not. To learn more about this, you can check out our post on requesting compensation from hotels and airlines. The DOT regulations do cover passengers for tarmac delays of three hours or more, lost or delayed luggage, and if you get (involuntarily) bumped from a flight due to overbooking.

• Tarmac delays: Aircraft cannot remain on the tarmac for over three hours unless the pilot determines it’s unsafe to disembark passengers or air traffic control advises the plane may not return to the gate. However, the airline must give you adequate food and water within the first two hours of a tarmac delay.
• Involuntarily denied boarding: While the rate of involuntary bumping is down to 1/10,000 passengers on domestic flights, with 700 million domestic passengers carried last year, that adds up to tens of thousands of passengers left stranded at the gate. If you are involuntarily bumped from a domestic flight you’re entitled to:
  • Less than one-hour arrival delay: No compensation
  • 1 to 2-hour arrival delay: 200% of one-way fare (but no more than $775)
  • Over 2-hour arrival delay: 400% of one-way fare (but no more than $1,550)

How To Get Compensation for Delayed International Flights From the U.S.

Like domestic itineraries, there are no federal requirements for delayed or canceled flights leaving the U.S. When it comes to tarmac delays and being denied boarding, the times and coverage amounts are slightly different.

• Tarmac delays: Aircraft cannot remain on the tarmac for more than four hours unless the pilot determines it’s unsafe to disembark passengers, or air traffic control advises the plane may not return to the gate.
• Involuntarily denied boarding: International passengers can claim the following compensation if they get bumped from a flight due to overbooking.
  • Less than one-hour arrival delay: No compensation
  • 1 to 4-hour arrival delay: 200% of one-way fare (but no more than $775)
  • Over 4-hour arrival delay: 400% of one-way fare (but no more than $1,550)

While the U.S. government isn't particularly strong on passenger protections, international flights leaving the U.S. are covered by the Montreal Convention, which offers a badly needed extra layer of coverage. The Montreal Convention covers passengers flying between 136 member countries (including the U.S.) against losses or damages caused by delayed or canceled flights and lost or delayed luggage. If the only consequence of a flight delay or cancellation is that it's inconvenient, that on its own will not be enough to enact the Montreal Convention. There must be losses from items such as pre-booked accommodation, connecting flights, car rentals, or the like.

The compensation amount claimable under the Montreal Convention is not issued in $, £, or €, rather it’s issued in Special Drawing Rights (SDR), a currency issued by the International Monetary Fund (IMF). At the time of writing, 1 SDR is worth $1.33 USD. Here's the IMF's page tracking the current value of SDR. If the airline is found liable for any losses or damages, passengers can claim up to 4,694 SDR — or $6,246. You can find the fine print on the Montreal Convention on the IATA website.

Note: The Montreal Convention applies to all international flights between member countries, but not within those countries unless the flight has a stopover in another country en route. Thus, it won't cover domestic flights.

How To Get Compensation for a Delayed Flight Departing (or Within) Europe

European Union legislation (specifically EC261) covers flights between EU member countries, within member countries, departing member countries, and flights on EU-licensed carriers flying into the EU. Flights must be delayed by a minimum of three hours for compensation to kick in, and the affected itinerary must fall under a single reservation.

Causes for delays or cancellations can’t involve extraordinary circumstances like severe weather events, airline flight staff striking, medical emergencies, war, and a whole host of things outside the airline’s control. In short, if the airline is at fault, you likely qualify for compensation.

Credit: Harry Knight/Unsplash

In Europe, airlines are also obliged to take care of you while you wait for passage on another aircraft, with the following stipulated:

• Refreshments
• Food
• Accommodation (if you are rebooked to travel the next day)
• Transport to your accommodation and return to the airport
• Two telephone calls, fax messages, or emails

Flight delays

Compensation for delays and involuntarily denied boarding is based on both the distance flown and the origin of the flight:

• €250 for flights of 1,500 km or less
• €400 for flights of 1,500+ km within the EU and all other flights between 1,500 and 3,500 km
• €600 for flights of 3,500+ km

If the carrier offers you re-routing and you reach your final destination with a delay of two to four hours, the compensation may be reduced by 50%. You can find all the relevant information on claiming compensation at Europa.eu.

Flight cancellations

Compensation for flight cancellations is even more complicated. It is based on when you are notified of the cancellation if the airline re-routes you on a different flight and what time you arrive at your destination. The distances and compensation amounts remain the same, but when you’re notified of the change and when you arrive at your destination are also factored into the re-routing requirements. You won't receive compensation if you are:

• Notified more than 14 days in advance.
• Notified between two weeks and 7 days before scheduled departure and re-routing allows you to depart no more than two hours before the original departure and reach your final destination less than four hours after the originally scheduled time of arrival.
• Notified less than seven days before the scheduled departure and re-routing allows you to depart no more than one hour before the original departure and reach your final destination less than two hours after the originally scheduled time of arrival.

Confused yet? It’s a lot to take in! If you're looking for more details, this post does a great job summarizing EU compensation rules. If you're trying to understand your rights in a specific travel situation, the Europa.eu site offers an interactive survey to guide you to the relevant information.

Regardless of where you are or where you're heading, it's never a bad idea to have a backup plan waiting in the wings. As we're probably all aware, extenuating circumstances can arise, such as bad weather or mechanical issues. So if you're traveling somewhere that you can't afford to show up late, make sure you have a backup plan using points and miles that allows you to cancel last minute in the event your original itinerary goes through as planned.

Let Someone Else Handle Your Claim (For a Fee)

The different rules and regulations for each region and carrier are enough to give you a headache at the best of times. If you're having trouble wrapping your head around the legislation — or you simply don’t have enough time available to go through the entire process — a handful of companies can help you claim the compensation that you deserve.

One of the companies you can use is called AirHelp. Simply submit all of the details, and AirHelp will do all of the heavy lifting for you. Representatives will check whether your delay or cancellation warrants compensation, contact the airline directly on your behalf, negotiate a settlement, and, if necessary, take the airline to court!

Credit: Mikhail Nilov/Pexels

AirHelp's service fee is 25% of the settlement reached with the airline — not bad considering the time (and money) you save. For the delayed flight compensation for my flight to Sicily, I decided to use AirHelp myself. The service was straightforward and took no more than five minutes to complete. If AirHelp isn't successful in winning you any compensation, you aren't required to pay.

Although I decided to use AirHelp, there are many alternative services out there that can help you with your claim:

• Skycop
• FlightClaimEU
• Compensair
• EUclaim
• SkyRefund

Before using any of the above services, you should carefully review their terms and conditions, fees, and success rates. Additionally, be aware that these services may not be necessary for every situation, and you often can pursue compensation directly with the airline if you are familiar with your rights and the relevant regulations, such as the EU Regulation 261/2004 for flights within the European Union.

Related: AirHelp Can Pay You During Flight Problems

Take Advantage of the Travel Insurance Offered by Your Credit Card

If you pay for your flight (or the taxes and fees on an award ticket) with the right card, you can have extra protections for your trip if you encounter delays, cancelations, or baggage problems. Check out the following to learn more:

• Guide to trip interruption and cancellation insurance
• Guide to trip delay insurance
• Guide to delayed and lost luggage insurance

Credit: Ketut Subiyanto/Pexels

You'll notice Chase has emerged as the top card issuer for travel coverage. Here are a few of our favorite cards to use to pay for flights:

• Chase Sapphire Preferred^® Card
• Chase Sapphire Reserve^®
• Ink Business Preferred^® Credit Card

Related: How To File a Flight Delay Claim with Chase

Final Thoughts

Knowing when to claim compensation from an airline is an essential part of the rewards travel puzzle. If the worst you suffered was a late arrival, a changed flight, and a little inconvenience, then trying to claim compensation may not be in your best interest and is unlikely to turn up any benefit. Conversely, you probably have a valid basis for a claim if you suffered financial losses due to a delayed or canceled flight and the airline is squarely in the wrong.

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