What You Need to Know About FAA Flight Compensation Rules

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Ever wondered what rights you have as a traveler? 

Air travel rights in the U.S. are governed by the Department of Transportation (DOT), and the Federal Aviation Administration (FAA) is an agency within the DOT responsible for aviation safety and operations.

While the FAA oversees aviation safety and operations, passenger compensation rights are primarily established by DOT regulations.

These regulations govern flight delays, cancellations, and overbookings in the U.S. (but differ significantly from international regulations like EU261). 

The policies largely focus on rebooking and passenger accommodations rather than monetary compensation, but there are still instances where you may be eligible for refunds, reimbursements, or other forms of compensation.

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Understanding U.S. Air Travel Compensation

When something goes wrong with your flight schedule and your travel gets interrupted, airlines might owe you something. 

The following key compensation policies apply to all flights originating or terminating in the United States, along with any air travel within it, regardless of carrier. 

Delays and cancellations

First (and perhaps most misunderstood): Airlines are not legally required to compensate passengers for delays or cancellations caused by circumstances beyond the airline’s control (like bad weather).

That doesn't mean you won’t receive anything. Airlines have their own policies for offering amenities, like meal vouchers and hotel rooms, to stranded or delayed passengers. 

During delays caused by weather or air traffic control issues, airlines do often provide goodwill gestures like meal vouchers. But it’s never a guarantee!

READ MORE: Flight Delay Compensation: What You’re Entitled to and How To Get It

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Overbooking

Overbooking is a frustrating, yet perfectly legal practice. However, the DOT requires airlines to ask for volunteers before they involuntarily “bump” someone from the flight.

If you’ve been bumped and end up delayed more than an hour, you are entitled to compensation per the DOT. 

But there is no set compensation amount, so if you’re bumped, negotiate for what they call “mutually acceptable compensation.” This is where you could really score some big compensation, like large amounts of travel credit, frequent flier miles, and more.

Lost, delayed, or damaged baggage

Airlines are liable if they lose or damage your baggage. 

Again, there are no federal guidelines for compensation type or amount, except that the airline needs to refund the checked bag fee and repair or reimburse you for the damages up to a certain amount. 

This is called the “liability limit,” and the DOT currently has this set at $3,800.

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Keep in mind that any damages have to be “provable,” so take pictures of your bags before you check them in.

And if the airline loses your bags or they’re delayed, they are required to reimburse you for reasonable necessities during the time the bag was lost. They’re notoriously stingy, so if this happens to you, only purchase the bare minimum!

READ MORE: Delayed Baggage Compensation: What Are You Entitled To?

Refunds 

Refunds are required by the DOT when an airline fails to provide a service that the passenger paid for, like a seat upgrade or wifi service.

You’re entitled to a ticket refund only if your flight has been delayed or canceled and you decline any compensation from the airline, effectively choosing not to fly. 

In this case, you’d be holding an unused ticket, and the airline needs to pay you back for the flight you didn’t take.

If an airline owes you a refund of any amount, the DOT requires the refund to be automatically applied to you. This keeps you from having to jump through the airline’s hoops to get what you are owed. 

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Steps To Take If Your Flight Is Delayed or Canceled

As long as your flight has been interrupted due to factors within the airline’s control (like crew delays or mechanical issues), you are entitled to certain services. 

Remember that these vary depending on which airline you’re flying since they’ve each set their own guidelines:

• Alaska Airline Flight Delay Compensation
• Allegiant Airlines Flight Delay Compensation
• American Airlines Flight Delay Compensation
• Delta Air Lines Flight Delay Compensation
• Frontier Airlines Flight Delay Compensation
• Hawaiian Airlines Flight Delay Compensation
• JetBlue Flight Delay Compensation
• Southwest Airlines Flight Delay Compensation
• Spirit Airlines Flight Delay Compensation
• United Airlines Flight Delay Compensation

Know your rights at the gate

For controllable delays and cancellations, every major domestic airline has committed to rebooking passengers on a new flight for free, along with providing meal vouchers when travel interruptions result in passengers waiting for three hours or more.

Always check in with the gate agent to see the reason for the delay and to collect any meal or hotel vouchers.

Even if you aren’t entitled to compensation, the agent may provide you with a meal voucher anyway. You never know until you ask! 

Tip: The DOT released a very helpful delay and cancellation dashboard showing what services each airline has committed to. 

Ask about additional assistance 

Remember: You never know until you ask!

It’s not unheard of for travelers to receive compensation when they ask politely, even if they aren’t entitled to it. This might look like some frequent flier miles, an extra meal voucher, or even a free hotel room.

Save all your receipts for expenses not covered by the airline. In many cases, you can submit them to the airline for reimbursement after the fact.

Use travel insurance and credit cards

Travel insurance covers costs airlines won’t, like nonrefundable hotel expenses or an extra meal at the airport while you wait.

Trip delay or cancellation insurance is your best friend in these situations because you just have to file a claim and submit receipts, and boom — your travel insurance policy will reimburse you!

If you don’t have a preferred insurance provider, you can shop for one through an online marketplace like VisitorsCoverage, which lets you compare and get quotes for different policy options.

Some credit cards with travel benefits can also reimburse you for meals, lodging, or rebooking fees. 

For example, the Chase Sapphire Preferred® Card will reimburse you up to $10,000 per person ($20,000 per trip) for prepaid, nonrefundable expenses if your trip is canceled due to weather, and up to $500 per ticket if your flight is delayed over 12 hours or requires overnight stay.

The more premium The Platinum Card® from American Express also offers up to $10,000 for cancellations and up to $500 for delays, but the delay only needs to be over six hours.*

To get reimbursed, though, you need to have used that credit card to buy the flight, plus use it for all the expenses you want reimbursed, like overnight accommodations and meals.

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File a claim with the DOT

When you’re entitled to compensation but the airline has failed to provide it, you should first file a claim with the airline. But if that hasn’t worked, you can file a claim with the Department of Transportation.

As the enforcers of aviation consumer protections, the DOT can prompt action from the airlines on your behalf. And if it’s an ongoing issue, they may fine the airline for its behavior.

How FAA Rules Differ From Other Compensation Policies

In the United States, federal policies are focused on getting passengers on their way rather than compensating them for the trouble. This isn’t the case internationally.

U.S. federal protections vs. EU261 compensation 

Unlike the U.S. federal regulations, EU261 provides monetary compensation for delays and cancellations caused by airline-controlled factors.

For example, if your Delta flight from JFK to Amsterdam was canceled, the DOT would require Delta to uphold its promise to rebook you on a new flight for free. 

Meanwhile, the same flight on KLM would fall under the jurisdiction of EU261, which guarantees financial compensation once you’ve been delayed for a certain period of time.

The amount of compensation you receive depends on the length of the delay and the distance of your flight. 

Domestic vs. international flight compensation 

While FAA rules apply primarily to domestic flights and flights to or from the United States, international flights are also governed by agreements like the Montreal Convention, its older brother called the Warsaw Convention, and potentially EU261.

The Montreal Convention sets upper limits to the compensation an airline owes you if they damage your bags, plus compensation if passengers are injured or killed. 

You would be covered under the Montreal Convention if you were on an international flight and got food poisoning from the dinner they served, you got hurt during turbulence, or your bags were damaged when you picked them up.

READ MORE: Domestic vs. International Flight Compensation: Know the Rules

FAQs About FAA Flight Compensation

Are airlines required to pay for hotel stays during overnight delays?

There are no federal requirements for airlines to provide overnight accommodations. It all comes down to the airline you're flying with and the reason for the travel interruption. 

If your flight gets canceled because of crew delays (something within the airline’s control) and you’ve been rescheduled for a morning flight, every domestic airline except Frontier has promised complimentary accommodations. 

On the other hand, if your flight was canceled due to weather (outside the airline’s control), the airline is not responsible for providing overnight accommodations. This is when travel insurance or credit card coverage really comes in handy!

Can I claim compensation for weather-related delays under FAA policies?

You can’t claim compensation from an airline for a weather-related interruption. 

There are no federal requirements for customer care during uncontrollable events like weather. The only time you’re entitled by law to compensation is when the airline bumps you due to an overbooked flight.

The airline may provide meal vouchers or even hotel accommodations, but those amenities are provided only at their discretion and are not a guarantee.

What should I do if my rebooked flight is delayed or canceled again?

If you were rebooked on a new itinerary but it got delayed or canceled again, you may want to consider rebooking out of a nearby origin or destination. 

The airline should still rebook you for free, but if they cannot offer any reasonable alternatives and you decide not to fly, they owe you a full refund for the unused ticket that you’re holding. 

If you’re at the airport when your flight is delayed, head to a lounge or a quiet spot to charge your phone and consider your options. You can often rebook faster via the airline app instead of the customer service line. 

TL;DR: Getting Compensation Under FAA Flight Rules

The U.S. federal flight compensation rules are designed to protect travelers in specific scenarios, but they offer fewer monetary benefits compared to international regulations. 

The DOT (and FAA) balances airline autonomy with consumer protections, and the airlines have ended up with a lot of power over their customer service.

Stay informed about these federal policies, use travel insurance for added protection, and always ask airlines about extra assistance. You never know what they might give you!

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* Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.