Flight nightmare? Here’s how to get compensated

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“It’s not the destination, it’s the journey,” said American essayist Ralph Waldo Emerson. Ralph clearly was not among the travellers on one of more than 350 cancelled or 1,400 delayed flights after a worldwide tech outage caused by an update to Crowdstrike’s “Falcon Sensor” software in July of 2023.

U.S. airlines carried nearly 863 million travellers in 2023, with Canadian carriers accounting for another 150 million, many of whom experienced lost luggage, flight delays, cancellations or were bumped off their flights. It’s unclear how many of them were compensated for these inconveniences.

Suffice it to say, posting a crabby rant on social media might temporarily soothe anger, but it won’t put wasted money back in pockets. Money.ca shares what to know in order to be compensated for the three most common air travel headaches.

Lost luggage

Bags elected to go on a vacay without you? Check off the following:

Alert the airline, both in person and in writing, of any missing bags. Remember, the clock starts ticking immediately. After 21 days, the baggage is considered lost and the airline is liable for it and its contents.
Contact the U.S. Department of Transportation (DOT) or Canadian Transportation Agency, who will query the airline on your behalf and give them a 30-day deadline to respond.
Usually, the airline will resolve the issue, but if it doesn’t, or if you’re unsatisfied with the offer, the next level is mediation. Beyond that, the case could move to adjudication, a court-like process with a panel deciding on the outcome. On international flights, you have up to two years to file litigation.

If you expect a large payout, think again. Tariffs (air carrier contracts) limit the compensation amounts for “loss of, damage to, or the delay in delivery of baggage or other personal property.”

In the case of Air Canada, the maximum payout is $1,500 per passenger in the currency of the country where the baggage was processed. To raise that limit, purchase a Declaration of Higher Value for each leg of the trip. The charge is $0.50 for each $100, in which case the payout limit is $2,500.

For Delta Air Lines, passengers are entitled to up to $3,800 in baggage compensation, though how much you’ll receive depends on your flight. Delta will pay up to $2,080 for delayed, lost, and damaged baggage for international travellers, almost half of what U.S. domestic passengers can claim.

If your flight is marked delayed for more than 30 minutes, approach the gate agent and politely request food and hotel vouchers to be used within the airport or nearby.

Delayed/cancelled flights

Different air carriers and jurisdictions have their own compensation policies when flights are delayed or cancelled. For example, under European Union rules, passengers may receive up to 600 Euros, even when travelling on a non-EU carrier. Similarly, the DOT states that travellers are entitled to a refund “if the airline cancelled a flight, regardless of the reason, and the consumer chooses not to travel.” However, US rules regarding delays are complicated.

Some air carriers, such as Air Canada, do not guarantee their flight schedules. They’re also not liable for cancellations or changes due to “force majeure” such as weather conditions or labour disruptions. If the delay is overnight, only out-of-town passengers will be offered hotel accommodation.

Nevertheless, many airlines do offer some compensation for the inconvenience. If your flight is marked delayed for more than 30 minutes, approach the gate agent and politely request food and hotel vouchers to be used within the airport or nearby.

Flight compensation in the U.S.

In terms of cash compensation, what you’ll get can differ significantly based on things like departure location, time, carrier and ticket class.

The DOT offers a helpful delay and cancellations dashboard designed to keep travellers informed about their compensation rights. The dashboard is particularly helpful because, as the DOT states on its website, “whether you are entitled to a refund depends on a lot of factors – such as the length of the delay, the length of the flight, and your particular circumstances.”

Flight compensation in Canada

The Canadian Transportation Agency is proposing air passenger protection regulations that guarantee financial compensation to travellers experiencing flight delays and cancellations, with the level of compensation varying depending on the situation and how much control the air carrier had. The proposed regulations include the following:

A plane must return to its gate after three hours on the tarmac.
Minimum requirements will be set for procuring food, drink, lavatories, ventilation and access to electronic communications during the delay.
For larger airlines, payouts will range from $400 for a three- to six-hour delay, to $700 for six to nine hours, and $1,000 for more than nine hours. For smaller carriers, the compensation would be $125, $250, and $500, respectively.
Here’s the loophole: If the delay is related to the air carrier’s maintenance problems, no compensation is required.

The airline is obligated to complete the passenger’s itinerary. If the new ticket is for a lower class of service, the air carrier would have to refund the cost difference; if the booking is in a higher class of service, passengers cannot be charged extra.

If the passenger declines the ticket, the airline must give a full refund, in addition to the prescribed compensation. For overnight delays, the air carrier needs to provide hotel accommodation and transportation free-of-charge. Again, if you are unsatisfied, the Canadian Transportation Agency or Department of Transportation may advocate on your behalf.

Bumped off the flight

Passengers get bumped because airlines overbook. When this happens, the air carrier must compensate you.

For international flights in the US, the rate is 200 per cent of your one-way fare to your final destination, with a $675 maximum. If the airline does not make travel arrangements for you, the payout is 400 per cent of your one-way fare to a maximum of $1,350.

To qualify, you must check-in by the stated deadline, which on international flights can be up to three hours ahead. Keep in mind that if you accept the cash, you are no longer entitled to any further compensation, nor are you guaranteed to be rebooked on a direct flight or similar type of seat.

Don’t be too quick to give up your boarding pass. Negotiate for the best compensation deal that would include cash, food and hotel vouchers, flight upgrade, lounge passes, as well as mileage points. But avoid being too greedy – if the gate attendant is requesting volunteers and you wait too long, you’ll miss the offer.

According to Air Canada’s tariff, if a passenger is involuntarily bumped, they’ll receive $200, in cash or bank draft, for up to a two-hour delay; $400 for a two- to six-hour delay; and $800 if the delay is over six hours. (Air Canada was forced to raise its payouts in 2013 due to passenger complaints.) The new rules would raise the payout significantly: $900 for up to six hours; $1,800 for six to nine; and $2,400 for more than nine hours, all to be paid within 48 hours.

Statistically speaking, Delta Airlines is the carrier most likely to bump. A few years ago, Delta raised its payout maximum to $9,950, while United Airlines tops out at $10,000.

This story was produced by Money.ca and reviewed and distributed by Stacker.

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