Compensation policies: Global overview

Jan 31 2025 MFR travel team

Flight disruptions such as delays, cancellations, and lost luggage are the worst part of air travel. But worry not, there are good news! In a lot of cases, the airlines are required to compensate you for the frustration. There are rules in place for compensation and they vary depending on the airline and where you’re flying, but by knowing your rights and how to take action in such events, it’s much easier to handle these disruptions and get the compensation you deserve.

In this article, we will discuss the compensation policies of major airlines, organized by region and carrier, and offer tips to make sure you receive the compensation you are entitled to. Let’s dive into it!

The compensation policies of the airlines are mainly determined by the regional regulations and of course, the airlines individual policies. Let’s look at the overview of the general rules that apply to different regions:

1. Europe 

You are flying from or within the European Union, but suddenly your flight is cancelled. Now the Regulation EC 261/2004 comes in. You are strongly protected by this law, and you could be entitled to compensation between €250 to €600, as long as the problem comes from the airline and not an external factor. Remember that the compensation amount depends on the distance.

• Delays: If your flight exceeded the 3 hour mark for delay, you are entitled to compensation.
• Cancellations: You can claim refund or rebooking, plus compensation if the cancellation happened less than 14 days before the departure date.
• Denied boarding: If boarding is denied due to overbooking, you are entitled to immediate compensation, rebooking and assistance.

2. United States

In the U.S., compensation policies are less stringent and depend on specific circumstances:

• Delays: Airlines are not required to compensate for delays caused by factors beyond their control, such as weather.
• Cancellations: Passengers are entitled to a refund if the airline cancels the flight and the passenger chooses not to rebook.
• Denied boarding: Compensation can reach up to $1,550, depending on the delay duration.

3. Asia and the Middle East

Compensation policies in Asia and the Middle East are generally less generous and depend on airline policies and local regulations:

• Delays and cancellations: Airlines typically offer rebooking, meals, or accommodation when required by local laws. But something more beyond that, such as monetary compensation is a very rare case.
• Baggage issues: Compensation for lost, delayed, or damaged luggage is governed by the Montreal Convention, with a maximum limit of 1,131 Special Drawing Rights (approximately $1,300).

Comparing compensation policies of major airlines:

Now that we know what the different policies for flight disruptions by regions are, it’s time to examine the policies of individual airlines:

1. Delta Air Lines (United States)

Delta is known for its innovative approach to passenger compensation:

• Delays and cancellations: Provides meal vouchers for long delays and accommodation for overnight disruptions caused by the airline.
• Baggage issues: Compensation follows the Montreal Convention.
• Denied boarding: Offers up to $1,550 based on delay duration.

2. Lufthansa (Germany)

As a leading European airline, Lufthansa follows the EU regulations:

• Delays and cancellations: Passengers can claim up to €600 for significant delays or last-minute cancellations.
• Baggage issues: Compensation adheres to EU rules and the Montreal Convention.
• Denied boarding: Offers immediate compensation and rebooking assistance.

3. Emirates (United Arab Emirates)

Emirates provides excellent customer service, but the financial compensation options are limited:

• Delays and cancellations: Provides rebooking and accommodation.
• Baggage issues: Compensation follows the Montreal Convention.
• Denied boarding: Assistance is provided, but compensation depends on local regulations.

4. Ryanair (Ireland)

They are a low-cost carrier, but Ryanair follows the EU regulations and at the same time also has strict policies:

• Delays and cancellations: Compensation is provided under EC 261/2004 but can take time to process.
• Baggage issues: Compensation for lost or damaged luggage is challenging to claim.
• Denied boarding: Compensation adheres to EU regulations.

5. Singapore Airlines (Singapore)

Singapore Airlines are also known for their excellent customer service, but their options for monetary compensation are just as limited as Emirates:

• Delays and cancellations: Provides meals and accommodation, but financial compensation is a rare case.
• Baggage issues: Compensation aligns with the Montreal Convention.
• Denied boarding: Compensation is not fixed, with passengers typically rebooked on the next available flight.

How to ensure you receive compensation

By far we went through the region policies and airlines individual approaches, but now it’s time to make sure that you are aware of your passenger rights, so you can take action in time and make the best out of your situation. Just follow these tips:

1. Know your rights: Be on good terms with the regulations that apply to your travel plans, such as EU Regulation 261/2004 or the Montreal Convention.
2. Keep records: Have a digital copy of all your documents - boarding passes, luggage tags, receipts for meals, hotel, taxi and so on.
3. File a claim promptly: Every airline has a timeframe for filing your complaint with them, make sure to follow it first.
4. Use compensation tools: Platforms like MYFLYRIGHT can simplify the claims process by filing on your behalf.
5. Leverage social media: Airlines often respond quickly to complaints posted on social media platforms like Instagram and Facebook.

Key tips

Flight disruptions are inevitable, but compensation policies vary widely across regions and airlines. European carriers provide the most robust compensation due to stringent regulations, while U.S. airlines offer limited packages. In Asia and the Middle East, airlines focus more on customer service and convenience than monetary compensation.

By understanding these differences, asserting your rights, and filing claims when eligible, you can better manage travel disruptions and secure the assistance or reimbursement you deserve. Plan ahead, stay informed, and have a safe journey!