Flight delay and cancellation compensation: what you're owed

What you're actually owed, by rule

Three separate rulebooks decide your payout, and they stack. First, the U.S. DOT's 2024 refund rule requires airlines to automatically issue cash refunds when a flight is cancelled or significantly changed and you don't accept the alternative. A "significant change" means a domestic departure or arrival time shifted by 3+ hours (6+ hours international), a downgrade in class, a change to a different departure/arrival airport, or added connections.

Second, EU Regulation 261/2004 applies to any flight departing an EU/EEA airport and to EU-carrier flights arriving in the EU. It pays flat cash — €250 for short-haul, €400 for medium-haul, €600 for long-haul (over 3,500 km) — for arrival delays of three hours or more, cancellations announced under 14 days out, and denied boarding.

Third, each airline's own DOT customer-service commitments cover meals for 3+ hour controllable delays, hotels for overnight controllable delays, and rebooking on the same airline at no charge.

Cash refund vs. travel credit vs. compensation

People blur these three, but the airline treats them very differently. A refund puts the ticket price back on your card within 7 business days (credit card) or 20 days (cash/check). A travel credit is a voucher — you can accept one if it's a better deal, but you never have to. Under the DOT rule, if you don't fly, the refund is your default and the airline has to send it without you begging.

Compensation is money on top of the refund for the inconvenience. In the U.S. there is no federal law requiring cash compensation for delays; that's why the DOT dashboard matters — it's how airlines publicly promise what they'll do. In the EU, compensation is guaranteed by law and separate from the refund. If your EU flight is cancelled, you can claim both the refund AND the €250–€600.

When the airline owes you nothing extra

The single biggest gotcha is controllable vs. uncontrollable delays. U.S. airlines only owe meals, hotels, and rebooking when they caused the delay — mechanical issues, crew scheduling, IT outages, fueling. Weather, air-traffic-control holds, and security incidents are "uncontrollable," and the airline's only obligation is to move you or refund you.

EU261 uses similar logic under the label "extraordinary circumstances": severe weather, political instability, strikes by third parties (like airport staff), bird strikes. Crew strikes at the airline itself generally do NOT qualify as extraordinary, and neither do most technical failures — courts have consistently sided with passengers here.

What's rarely excused: a maintenance issue that shows up at the gate, a missing pilot because scheduling ran thin, or a delay caused by an earlier flight the same aircraft was on. If the airline waves "weather" at you but the airport was open and other flights left, push back and ask for the specific reason code in writing.

Not legal advice — if the amount is significant, talk to a consumer attorney or file with the DOT.

How to file the claim, step by step

Speed matters. Most refund automation kicks in only if you decline the airline's rebooking, so make the choice on purpose. Do it in this order:

1. Screenshot the disruption: the app notification, the departure board, and any email announcing the change. Note the scheduled and actual times.
2. In the airline app, look for "Manage trip" → "Request refund." If a refund button doesn't appear, call the airline and ask them to code the ticket for a cash refund, not a voucher.
3. For a controllable delay, ask at the gate or via chat for a meal voucher and, if it's overnight, a hotel voucher. Get the agent's name.
4. For an EU flight, submit an EU261 claim on the airline's website (search "EU261" + carrier). Include boarding pass, booking reference, and the arrival-time delay.
5. If the airline denies or ignores you, file a complaint with the DOT at transportation.gov/airconsumer within 60 days. The DOT forwards it and the airline must respond within 60 days.
6. If still stuck, dispute the charge with your credit card ("services not rendered") within 60 days of the statement date.

What to do when the airline says no

Denials are common and often reversible. Start with a written appeal to the airline referencing the specific rule — 14 CFR Part 259 for U.S. refunds, or Regulation (EC) 261/2004 for EU flights — and attach your evidence. Give them 14 days to respond.

If nothing changes, escalate in parallel: file the DOT complaint, file with your state attorney general's consumer protection office, and open a Better Business Bureau case. Airlines take DOT complaints seriously because the DOT publishes complaint counts monthly.

Credit-card chargebacks are your backstop. Under the Fair Credit Billing Act you have 60 days from the statement on which the charge appeared to dispute "services not rendered." Include your refund request, the denial, and any DOT complaint number.

For EU claims, third-party services like AirHelp will file for a 25–35% cut — useful if the amount is large and you don't want the paperwork. You can also sue in small-claims court; several U.S. carriers have arbitration clauses in their contracts of carriage, so check before filing.

Class actions occasionally sweep up recurring airline problems. See how to find open class action settlements and how to check if you're part of a class action.

Baggage, seat fees, and other add-ons

The DOT rule also forced airlines to refund fees for services you paid for but didn't get. If your checked bag is delayed — more than 12 hours domestic or 15–30 hours international, depending on carrier — you're owed the bag fee back. If your Wi-Fi didn't work, if you paid for extra legroom and got moved to a middle seat, or if your paid seat assignment vanished, that fee is refundable too.

Interrupted trips also trigger reimbursement rights. If you had to buy dinner or a hotel during a controllable delay and the airline didn't provide a voucher, keep receipts and submit them. Most airlines cap out-of-pocket reimbursements around $50 for meals and the cost of a mid-tier hotel, but there's no federal number.

For lost bags, U.S. domestic carriers are liable up to $3,800 per passenger; on international itineraries the Montreal Convention caps liability around 1,288 SDR (roughly $1,700). File within 24 hours for delay, 7 days for damage, 21 days for lost.

Want to see if any of your travel spend already qualifies for a settlement? See what you're owed in about 30 seconds.

Records to keep and how long

Airline disputes rise and fall on documentation. Save the booking confirmation, every itinerary change email, boarding passes (photo or PDF), the app notification of the delay/cancellation, and any receipts you paid out of pocket. Keep them for at least two years — the DOT's statute-of-limitations for a formal case is generally two years from the disruption, and EU261 claims can go back six years in some member states.

If you get a partial voucher or a good-faith gesture, write down what the agent said before you accept. Accepting a voucher "in full satisfaction" of a claim can waive your right to the cash refund. Ask specifically: "Does accepting this waive my refund?" Get the answer in the chat log.

Also track any class actions against the airline you flew. Big airlines settle recurring issues — hidden fees, mishandled bags, disability access — every year. Our settlements directory shows what's currently open, and this guide on eligibility explains who qualifies.

Glossary

Significant change

A schedule change large enough to trigger a mandatory refund under DOT rules: 3+ hours domestic or 6+ hours international, a class downgrade, an airport change, or added connections.

Controllable delay

A delay the airline caused — mechanical, crew, IT, fueling — which triggers meals, hotels and rebooking obligations.

Extraordinary circumstances

The EU261 defense airlines use to avoid paying compensation: severe weather, ATC restrictions, security threats, third-party strikes.

Involuntary denied boarding

When you're bumped from an overbooked flight against your will; U.S. rules pay up to $2,150 depending on the delay to your final destination.

Contract of carriage

The airline's legal terms for your ticket; where you'll find its arbitration clause, baggage liability, and refund rules beyond the federal minimum.

Montreal Convention

The treaty that governs airline liability for delayed, damaged and lost baggage and injury on international flights.

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