Airline Compensation Rights: Complete 2025 Guide

When airlines cancel flights, deny boarding due to overbooking, lose your luggage, or cause lengthy delays, you have legal rights to compensation. The U.S. Department of Transportation's Aviation Consumer Protection Division enforces these rights under federal law. This comprehensive guide covers DOT regulations, international EU261 protections, and step-by-step instructions for claiming what you're owed.

U.S. Department of Transportation Regulations

The DOT enforces airline consumer protections under 14 CFR Part 259 and related regulations. Unlike many consumer industries, airline passengers have specific federal protections that apply regardless of what the airline's contract says.

Your Core Rights Under DOT Rules

• Refunds for cancellations: Airlines must refund your fare if they cancel your flight and you choose not to travel
• Denied boarding compensation: Cash compensation when bumped from oversold flights
• Tarmac delay protections: Airlines cannot hold you on the tarmac for more than 3 hours (domestic) or 4 hours (international) without allowing deplaning
• Truthful schedule information: Airlines cannot chronically delay flights without updating published schedules
• Fee transparency: All fees must be disclosed before purchase

Denied Boarding Compensation (Bumped Flights)

When airlines overbook and can't accommodate all ticketed passengers, DOT regulations (14 CFR 250) require specific compensation for involuntarily bumped passengers.

Mandatory Compensation Amounts (2024-2025)

Delay to Destination	Compensation	Maximum
0-1 hours (domestic) / 0-1 hours (international)	No compensation required	$0
1-2 hours (domestic) / 1-4 hours (international)	200% of one-way fare	$775
Over 2 hours (domestic) / Over 4 hours (international)	400% of one-way fare	$1,550

How to Claim Denied Boarding Compensation

1. Don't accept vouchers without knowing your rights: Airlines often offer travel vouchers. You can negotiate, but know you're entitled to cash.
2. Get written confirmation: Ask the gate agent for documentation that you were involuntarily denied boarding.
3. Request immediate payment: Airlines must pay on the spot, not weeks later. Demand a check or cash.
4. Keep your boarding pass: This proves you had a confirmed reservation and checked in on time.
5. File a DOT complaint if refused: Airlines that don't pay face enforcement action.

When Compensation Doesn't Apply

• Charter flights
• Aircraft with 30 or fewer seats
• Flights departing from foreign countries (though EU261 may apply)
• Passengers who didn't check in on time or follow ticketing requirements
• Passengers denied boarding for safety, security, or health reasons

Flight Cancellations and Refunds

When an airline cancels your flight, you have the absolute right to a refund of your ticket price - not just a voucher or credit. This applies even to "non-refundable" tickets.

Your Refund Rights

• Full refund required: For cancelled flights, the airline must refund your entire ticket price, including fees
• 7-day deadline: Credit card refunds must be processed within 7 business days; cash/check refunds within 20 days
• Original payment method: Refunds must go back to your original form of payment unless you agree otherwise
• Significant delays count too: If your flight is significantly delayed (varies by airline, typically 2+ hours domestic), you can often claim the same refund rights

What Airlines Don't Have to Cover (U.S. Domestic)

Unlike European regulations, U.S. law does NOT require airlines to provide:

• Hotel accommodations for overnight delays
• Meal vouchers during delays
• Cash compensation for delays (only for denied boarding)
• Rebooking on competitor airlines

However, most airlines voluntarily provide these as customer service. Check your airline's Contract of Carriage and ask assertively.

Lost, Delayed, and Damaged Baggage

Airlines are liable for mishandled baggage under DOT regulations implementing the Montreal Convention for international flights and domestic liability rules.

Liability Limits

Flight Type	Maximum Liability	Legal Basis
Domestic U.S. flights	$3,800 per passenger	14 CFR 254.4
International flights	~$1,780 (1,288 SDRs)	Montreal Convention

What Airlines Must Cover

• Delayed baggage: Reasonable interim expenses (toiletries, essential clothing) while your bag is missing
• Lost baggage: Depreciated value of items lost (not replacement cost)
• Damaged baggage: Repair or replacement of damaged items

Filing a Baggage Claim

1. Report immediately: File a report at the airport baggage office before leaving. Get a copy of the Property Irregularity Report (PIR).
2. Document everything: List all items and their approximate value. Keep receipts for interim purchases.
3. Follow up in writing: Submit a formal written claim within the airline's deadline (typically 21 days for international, varies for domestic).
4. Keep proof: Maintain copies of baggage tags, boarding passes, and all correspondence.

EU Regulation 261/2004 (EU261)

If your flight departs from an EU airport (on any airline) or arrives in the EU (on an EU carrier), you may have significantly stronger rights under EU261. This regulation provides fixed compensation amounts that don't require you to prove actual damages.

When EU261 Applies

• Flights departing from EU airports: Any airline, any destination
• Flights arriving in EU airports: Only on EU-based carriers
• Includes UK: Despite Brexit, similar rules now apply under UK261
• Iceland, Norway, Switzerland: Also covered

EU261 Compensation Amounts

Flight Distance	Delay at Arrival	Compensation
Up to 1,500 km	3+ hours	250 euros (~$270)
1,500-3,500 km	3+ hours	400 euros (~$435)
Over 3,500 km	4+ hours	600 euros (~$650)

EU261 Also Requires

• Meals and refreshments: Appropriate to the delay duration
• Hotel accommodation: If overnight stay is required
• Transport to hotel: Airline must arrange transportation
• Two communications: Phone calls, emails, or faxes
• Refund option: Full refund within 7 days if you choose not to travel

Extraordinary Circumstances Exception

Airlines don't have to pay EU261 compensation for delays caused by "extraordinary circumstances" beyond their control:

• Severe weather conditions
• Air traffic control restrictions
• Security risks or political instability
• Strikes by airport or ATC staff (not airline staff)
• Bird strikes or hidden manufacturing defects

However, mechanical problems, crew shortages, and most operational issues are NOT extraordinary circumstances, so compensation is still required.

Tarmac Delay Rules

DOT regulations prohibit extended tarmac delays without allowing passengers to deplane.

Maximum Tarmac Times

• Domestic flights: Airlines must offer deplaning after 3 hours
• International flights: Airlines must offer deplaning after 4 hours
• Exceptions: Safety/security concerns, or if deplaning would significantly disrupt airport operations

Required During Tarmac Delays

• Food and water within 2 hours of the delay beginning
• Working lavatories
• Medical attention if needed
• Regular status updates every 30 minutes

Violations

Airlines face fines of up to $27,500 per passenger for tarmac delay violations. If you experience a violation, file a DOT complaint immediately.

Step-by-Step Claim Process

1Document Everything at the Airport

• Take photos of delay/cancellation boards showing your flight
• Keep all boarding passes and luggage tags
• Get written confirmation from gate agents about the reason for delays
• Save receipts for any expenses (food, hotel, transportation)
• Note names of airline employees you speak with

2File Your Claim with the Airline

• Submit claims through the airline's official website or customer service
• Include your confirmation number, flight details, and specific request
• Cite the specific regulation (DOT denied boarding rules, EU261, etc.)
• Request a response within 30 days

3Escalate if Necessary

• DOT Complaint: File at transportation.gov/airconsumer for U.S. airlines or flights
• EU National Enforcement Body: Each EU country has an authority that handles EU261 complaints
• Credit card dispute: If you paid by credit card, dispute the charge under the Fair Credit Billing Act
• Small claims court: For claims the airline refuses to pay

4Consider Third-Party Services

Companies like AirHelp, Flightright, and ClaimCompass pursue EU261 claims on a contingency basis (typically 25-35% of recovery). Consider these if:

• The airline is non-responsive
• You don't have time to pursue the claim yourself
• The claim involves complex multi-leg itineraries

Writing a Demand Letter to an Airline

A formal demand letter can be effective when airlines ignore initial claims. Your letter should include:

• Your booking details: Confirmation number, flight numbers, dates
• What happened: Factual description of the incident
• Legal basis: Cite the specific regulation (e.g., "14 CFR 250.5" or "EU Regulation 261/2004 Article 7")
• Specific amount demanded: Calculate your compensation based on the applicable rules
• Deadline: Give 14-30 days to respond
• Consequence: State that you will file a DOT complaint and pursue legal action if ignored

Credit Card Protections

If you paid for your flight with a credit card, you have additional protections:

Chargeback Rights

• Services not rendered: If your flight was cancelled and no refund provided, dispute the charge
• Services not as described: Significant changes to your itinerary may qualify
• 60-day window: You generally have 60 days from the statement date to dispute charges

Travel Insurance

Many premium credit cards include trip delay and cancellation insurance. Check your card benefits for:

• Trip delay insurance (typically covers expenses after 6-12 hour delays)
• Trip cancellation insurance
• Lost baggage insurance (often supplements airline liability)

Frequently Asked Questions

Am I entitled to compensation for a weather delay?

In the U.S., no - airlines don't owe compensation for weather-related delays or cancellations, though you're still entitled to a refund if you choose not to travel. Under EU261, weather is an "extraordinary circumstance" that exempts airlines from compensation, but they must still provide meals, accommodation, and rebooking.

Can I claim compensation years after a flight?

For EU261 claims, time limits vary by country (typically 2-6 years). For U.S. claims, you should file promptly, ideally within 30 days, though formal statutes of limitations vary by state.

What if my flight was operated by a different airline than I booked?

The operating carrier (the airline that flew the plane) is responsible for EU261 compensation. For U.S. claims, the marketing carrier (the airline you booked with) is typically responsible.

Do I have to accept a voucher instead of cash?

No. For DOT-mandated compensation (denied boarding), you're entitled to cash. Airlines cannot force you to accept vouchers. For EU261, you can request cash or bank transfer.

What if the airline says my claim is denied?

Airlines often reject valid claims. Escalate to the DOT (for U.S. flights) or the relevant national enforcement body (for EU flights). You can also pursue claims in small claims court.

Are basic economy tickets covered?

Yes. DOT regulations and EU261 apply regardless of ticket class or fare type. The protections are based on the flight, not the ticket you purchased.

What about codeshare flights?

For EU261, the operating carrier is responsible. For U.S. regulations, both the marketing and operating carriers may share responsibility. File claims with both if you encounter difficulties.

Resources and Contacts

U.S. Department of Transportation

• Aviation Consumer Protection: transportation.gov/airconsumer
• Complaint Hotline: 202-366-2220
• Online complaint form: transportation.gov/airconsumer/file-consumer-complaint

EU National Enforcement Bodies

• UK Civil Aviation Authority: caa.co.uk
• German Schlichtungsstelle: soep-online.de
• French DGAC: ecologie.gouv.fr
• Full list: ec.europa.eu/transport/themes/passengers/air_en

Airline Customer Service Contacts

Most airlines have dedicated customer relations departments for compensation claims. Find contacts on the airline's website under "Contact Us" or "Customer Service."