Compensation for Delayed & Canceled Flights (2024) (2024)

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To receive compensation for delayed flights, you’ll need to call your airline through its customer service line or go to the customer service desk at the airport to file a claim. Previously, the Department of Transportation (DOT) specified that airlines in the U.S. were not required to compensate passengers if a flight was delayed or canceled — companies were only required to provide compensation if you were moved or bumped from an overbooked flight. However, as of April 2024, new changes have been made that benefit travelers looking for delayed or canceled flight compensation.

Under this new rule, airlines must promptly provide passengers with cash refunds if owed. This means you won’t have to accept travel credits or alternative transportation arrangements in case of a cancellation or “significantly changed” flight. A “significantly changed” flight now entails the following scenarios:

• A departure or arrival time changed by more than three hours domestically and six hours internationally
• Departures or arrivals moved to a different airport
• Increased connection flights
• Downgrades to a lower service class
• Connections at less accessible airports or flights on less accessible planes for those with disabilities

In the sections below, learn more about how this new rule can make it easier for travelers to get their money back in various scenarios, as well as general rules and travel stipulations.

Canceled Flights

If an airline cancels your flight less than 14 days before departure and you choose to cancel your trip entirely, you’re entitled to a refund of both your plane ticket and any pre-paid baggage fees (in most cases). This typically applies even if you have non-refundable tickets.

If you choose to continue your trip, the airline will typically offer to rebook you another flight for free. However, the departure date and time may be different from your initial booking. It is also likely that your new flight will be with the same airline — while airlines can technically book you a more convenient flight with a different carrier, they are not required to do so.

Delayed Flights

If an airline delays your flight, it must rebook you on a different flight. However, until 2024, federal law didn’t require airlines to provide passengers with money or other compensation for delayed flights.

According to the DOT, you’re entitled to a refund if your flight is “significantly” delayed. Previously, the agency did not define how long a significant delay is. However, under the new 2024 ruling, customers no longer need to file complaints to determine refund eligibility on a case-by-case basis. Instead, what the DOT defines as a “significantly” delayed flight is clearly outlined and must be honored by airlines.

There are few things more frustrating than baggage issues when traveling. With just 0.51% of bags mishandled, it’s unlikely your bags will be lost or delayed. But you never know what might happen. Lost or delayed luggage can force you to spend money on clothing and other necessities at your destination, so it’s helpful to know when you’re entitled to compensation due to baggage issues.

Keep in mind that regardless of whether your bag is damaged, lost or delayed, airlines can exclude items from coverage. In other words, you may not be fully compensated for everything that’s lost or damaged in your bag.

There is also a cap on the amount of money airlines are required to compensate you if your bags are lost, damaged or delayed. The maximum liability amount allowed by the DOT is $3,800 per passenger. If you’re traveling with valuable items that exceed that threshold, you may want to consider additional baggage insurance.

Damaged Bags

Airlines are not responsible for any pre-existing damage to your bag or damage incurred by overpacking your bag. If your bags are damaged in transit, the airline is required to reimburse you the cost of repairing your luggage. However, if your bag is damaged beyond repair, the airline is allowed to negotiate a compensation amount based on the depreciated value of the luggage.

You should immediately notify your airline if your bag has been damaged and ensure the conversation is documented so you can file a claim with the DOT if you are not properly compensated.

Delayed Bags

If your bag is delayed, it’s the airline’s responsibility to find and get it back to you. Most airlines will bring your bag to your hotel or wherever you’re staying once it’s found, but this is not a requirement. Regardless, airlines are required to compensate you for any “reasonable, verifiable and actual” expenses that arise due to your baggage delay, according to the DOT.

It’s also worth noting that the new 2024 rules set forth by the DOT state that passengers who file a delayed baggage report are now entitled to a refund of their checked bag fee. Airlines must provide this refund if they don’t deliver your bag within 12 hours of a domestic flight arrival or 15 to 30 hours of an international flight arrival, depending on flight length.

If your bag is delayed, it’s important to get in touch with an airline representative immediately. Make sure you give the representative your contact information and accommodation details, and you should get a phone number to call to check the status of your bags. Be sure to stay in close contact with the airline until your bag is found.

Lost Bags

Unfortunately, a percentage of what may seem like delayed luggage is actually lost in transit. All airlines have their own policies regarding what exactly is considered a lost bag. Most airlines will consider a bag lost if it cannot be found within five to 14 days after a flight.

Should your airline lose your bag, you’re entitled to compensation up to the maximum liability limit of $3,800. The airline is also required to reimburse you any baggage fees paid to transport the lost luggage. The airline may require you to provide receipts of purchase depending on which items you declare lost, so have receipts for any expensive items ready when you file your claim.

Unique Issues

Although you can run into a wide array issues while traveling, a few of the more common problems include overbooking and denied boarding. We cover both of these issues and related compensation below.

Overbooking

Overbooking flights is a common practice in the airline industry to keep planes full. Overbooking can help fill any seating gaps if people don’t show up for a flight or cancel at the last minute. While this method is not illegal, it can result in issues for some passengers.

When an airline overbooks a flight, it can either voluntarily or involuntarily bump passengers. In other words, the airline will move a passenger from the original flight to a seat on a different flight entirely. Before bumping passengers involuntarily or without approval, airlines must seek out voluntary travelers willing to take another flight in exchange for compensation. Airlines can offer any compensation amount to incentivize travelers to bump a flight. If the airline still needs to make room, it may involuntarily bump passengers or deny boarding.

Denied Boarding

Denied boarding is when an airline involuntarily bumps you from your originally booked flight. If you are denied boarding, the airline is required to inform you and explain why it chose to bump you instead of other passengers. Generally speaking, you cannot be involuntarily bumped after already boarding a flight.

Depending on the airline’s reasoning, you may be eligible for compensation if you are denied boarding. If you are bumped from a flight due to reasons such as overbooking, you may qualify for denied boarding compensation. However, passengers are usually not eligible for compensation if they experience any of the following situations:

• Aircraft changes due to safety or operational reasons
• A plane’s weight or balance restrictions prevent the passenger from boarding
• Charter flights that run outside an airline’s regular schedule are overbooked, delayed or canceled
• Flights on small aircrafts (less than 30 passengers) are overbooked, delayed or canceled
• International flights are overbooked, delayed or canceled

If you are not bumped from a flight for any of these reasons, you may be eligible for involuntary denied boarding compensation. To qualify, you must have a confirmed flight reservation, you must have checked in and arrived at your gate on time, and you must be unable to reach your destination within one hour of your original flight’s arrival time. The compensation amount will depend on how long of a delay you face, which is outlined on the U.S. DOT website.

Travel insurance is meant to protect you against financial risks and losses while traveling, like trip delays or cancellations, lost baggage, medical emergencies and more. Travel insurance tends to cost between 5% to 10% of your overall trip cost, according to Berkshire Hathaway. Many travel insurance plans cover the following events:

• Trip delay, interruption or cancellation
• Baggage delay or loss
• Emergency medical coverage, evacuation and repatriation
• Accidental death and dismemberment

The exact policy terms and coverage will depend on your insurance company, but travel insurance can be somewhat restrictive when it comes to cancellation coverage.

While a policy may offer cancellation coverage, there may be restrictions on qualifying events or compensation amounts. Travel insurance policies will typically cover flight cancellations due to the following reasons:

• Inclement Weather
• Natural disasters
• Sickness or death of a family member
• Loss of employment
• Stolen or lost passport
• Airline strikes

If you plan to use travel insurance for your next trip, be sure to review a policy’s coverage limits and exclusions before purchasing.

Although travel insurance may seem pretty all-encompassing in terms of the coverage it provides, there are some exclusions. Travel insurance will often exclude medical coverage for extreme sports and activities performed under the influence of alcohol or drugs. Depending on your policy, trip cancellation insurance may exclude coverage for predicted, named storms, such as hurricanes and tropical and winter storms.

To ensure you have coverage for the things you need, read through your policy carefully.

Learn more about Zach Hewke

Learn more about Tori Addison