Compensation for Airline Flight Delays, Cancellations, Denied Boarding, and Lost Baggage: Your Rights Under U.S. Law, EU261, and the Montreal Convention
Your flight was delayed overnight. Your connection was cancelled. The gate agent told you the flight was oversold and you weren't getting on. Or you landed and your suitcase didn't. What the airline owes you depends on where you were flying and which airline you were flying — and it can be governed by three very different sets of rules.
This article explains how compensation works for delays, cancellations, denied boarding, and lost, damaged, or delayed baggage under U.S. law, the European Union's air passenger rights regulation (EU261), and the Montreal Convention — and when you can claim under more than one.
Three Sets of Rules: Which One Applies to You?
- U.S. law — Department of Transportation (DOT) regulations govern domestic flights. Some U.S. rules, including the denied boarding and refund rules, also apply to international flights to and from the United States.
- EU261 — Regulation (EC) No 261/2004 applies to flights departing from an EU airport on any airline, and to flights arriving in the EU on an EU airline.
- The Montreal Convention — an international treaty that governs airline liability on "international carriage," generally when your ticketed departure and final destination are in two different treaty countries. It can cover a domestic leg if that leg is part of an international ticket.
A single trip can fall under more than one of these at the same time. A round trip from Atlanta to Paris, for example, is governed by the Montreal Convention for its entire length, by U.S. rules on the outbound flight from Atlanta, and by EU261 on the return flight from Paris.
Flight Delays
U.S. Law: Refunds, Not Compensation
There is no federal law requiring U.S. airlines to pay cash compensation for delays. The DOT proposed such a rule in December 2024, but it withdrew the proposal in November 2025.
What U.S. law does provide is a right to a refund. Under 14 CFR Part 260, if your flight is significantly changed — including an arrival 3 or more hours late on a domestic itinerary or 6 or more hours late on an international itinerary — and you choose not to travel, the airline must refund your ticket. This rule applies to U.S. airlines and to foreign airlines on flights to, from, or within the United States.
Many U.S. airlines also commit in their customer service plans to provide meal vouchers or hotel accommodations when a delay or cancellation is within the airline's control. These commitments vary from airline to airline and can change, so check your airline's current plan.
EU261: Fixed Compensation
If your flight departed from the EU (or arrived in the EU on an EU airline) and you reached your final destination 3 or more hours late, EU261 generally entitles you to fixed compensation of €250, €400, or €600 depending on the distance of your flight — unless the delay was caused by extraordinary circumstances. You do not have to prove any loss. Airlines must also provide meals, refreshments, and hotel accommodations while you wait. For additional details, see our article on EU261 flight compensation.
Montreal Convention: Actual Damages
Under Article 19, an airline is liable for damage caused by delay on an international itinerary unless it proves that it took all measures that could reasonably be required to avoid the damage, or that it was impossible to do so. There is no fixed payment. You can recover actual, provable losses, such as:
- Hotel and meal expenses the airline did not cover
- Replacement transportation you had to purchase
- Prepaid hotel nights, tours, cruises, or event tickets you lost because you arrived late
- Lost wages or documented business losses
U.S. courts have generally required proof of real economic loss and have been reluctant to award damages for inconvenience or lost vacation time alone. Under Article 22(1), the airline's liability for delay is limited to 6,303 Special Drawing Rights (SDRs) per passenger — roughly $8,400 at recent exchange rates.
Flight Cancellations
- U.S. law: If your flight is cancelled and you choose not to accept the alternative the airline offers, you are entitled to a refund under 14 CFR Part 260. There is no federal cash compensation for a cancellation.
- EU261: You can choose between a refund and rerouting, and you are entitled to care while you wait. You are also owed fixed compensation of €250 to €600 unless the airline gave you at least 14 days' notice, offered qualifying rerouting, or can prove extraordinary circumstances. For additional details, see our article on EU261 flight compensation.
- Montreal Convention: Losses caused by a cancellation on an international itinerary are often analyzed as a delay under Article 19. However, some U.S. courts have treated an airline's complete failure to transport a passenger as a breach of contract that falls outside the Convention.
Denied Boarding (Being "Bumped")
U.S. Law: 14 CFR Part 250
Under 14 CFR Part 250, passengers who are involuntarily denied boarding from an oversold flight departing a U.S. airport are entitled to compensation based on the one-way fare and how late they arrive:
| Arrival Delay at Final Destination | Domestic Flights | International Flights Departing the U.S. |
|---|---|---|
| Under 1 hour | No compensation | No compensation |
| 1–2 hours (domestic) / 1–4 hours (international) | 200% of one-way fare, up to $1,075 | 200% of one-way fare, up to $1,075 |
| Over 2 hours (domestic) / over 4 hours (international) | 400% of one-way fare, up to $2,150 | 400% of one-way fare, up to $2,150 |
You are entitled to receive this compensation by check or cash, not just a travel voucher. Part 250 also gives you a choice: you may accept the compensation, or you may decline it and pursue your actual damages in court. The written notice airlines must give bumped passengers warns that accepting the compensation may relieve the airline of any further liability to you.
EU261
If you are involuntarily denied boarding on a flight covered by EU261, you are entitled to fixed compensation of €250, €400, or €600, plus your choice of a refund or rerouting, plus care while you wait. For additional details, see our article on EU261 flight compensation.
Montreal Convention
U.S. courts are divided on how the Montreal Convention treats bumping. Some courts treat it as a delay governed by Article 19, which means the Convention's rules and limits apply. Others treat a refusal to transport as contractual non-performance outside the Convention. This affects which claims are available if you decline Part 250 compensation and pursue damages instead.
Lost, Damaged, and Delayed Baggage
U.S. Law: Domestic Flights
For purely domestic U.S. itineraries, 14 CFR Part 254 prohibits airlines from limiting their liability for lost, damaged, or delayed baggage to less than $4,700 per passenger. That covers the depreciated value of the bag and its contents, as well as reasonable interim expenses while a bag is delayed.
Separately, under 14 CFR Part 260, airlines must refund your checked bag fee if your bag is lost, or if it is significantly delayed and you filed a mishandled baggage report. A bag is significantly delayed if it is not delivered within 12 hours of arrival on a domestic itinerary, or within 15 or 30 hours on an international itinerary, depending on the length of the international flight. The bag fee refund rule applies to flights to, from, and within the United States.
Montreal Convention: International Itineraries
- Checked baggage (Article 17(2)): The airline is liable for destruction, loss, or damage without proof of fault, unless the damage resulted from an inherent defect in the bag itself.
- Carry-on baggage: The airline is liable only if the damage resulted from its fault or the fault of its employees or agents.
- When a delayed bag becomes lost (Article 17(3)): If the airline admits the loss, or if the bag has not arrived within 21 days after it should have, you may pursue a claim for a lost bag.
- Delayed baggage (Article 19): The airline is liable for damage caused by the delay — typically the reasonable cost of essential replacement items — unless it proves it took all reasonable measures to avoid it.
- Limit (Article 22(2)): 1,519 SDRs per passenger, roughly $2,000 at recent exchange rates. You can raise the limit by making a special declaration of value at check-in and paying any supplementary fee.
Note that international travelers are often protected less than domestic travelers: the Montreal Convention baggage limit is less than half of the U.S. domestic minimum of $4,700. Under Article 22(5), the delay and baggage limits do not apply if the damage resulted from the airline's intentional or reckless misconduct.
EU261
EU261 does not cover baggage. Baggage claims on flights to, from, and within the EU are governed by the Montreal Convention, which the EU has adopted into its own law.
Can You Claim Under More Than One Law?
Sometimes yes, sometimes no. The answer depends on the type of claim and the direction of your flight.
Denied Boarding Under Both U.S. Law and EU261
- Flight from the U.S. to Europe on a European airline (for example, New York to Frankfurt on Lufthansa): Part 250 applies because the flight departs the United States, and EU261 applies on its face because an EU airline is flying into the EU. However, EU261 does not apply to these inbound flights if you already received compensation or other benefits for that disruption under the law of the non-EU country. In practice, if you accept Part 250 compensation in the United States, you generally cannot also collect EU261 compensation for the same denied boarding.
- Flight from Europe to the U.S. on any airline (for example, Paris to Atlanta on Delta or Air France): EU261 applies. Part 250 does not, because it covers only flights departing U.S. airports.
- Flight from the U.S. to Europe on a U.S. airline (for example, Atlanta to Rome on Delta): Part 250 applies. EU261 does not, because the flight is inbound to the EU on a non-EU airline.
EU261 and the Montreal Convention
These can be cumulative. The Court of Justice of the European Union has held that EU261's fixed compensation is a separate, standardized remedy that does not conflict with the Montreal Convention. A passenger can receive EU261 compensation and also pursue actual damages under the Montreal Convention for losses beyond that amount. However, Article 12 of EU261 allows EU261 compensation to be deducted from any further compensation awarded for the same disruption.
The Montreal Convention Is Exclusive Within Its Scope
When the Montreal Convention applies, it is generally the exclusive basis for damages claims against the airline for delay and baggage. You cannot avoid its limits by suing under state-law theories such as negligence or breach of contract. For the same reason, U.S. domestic baggage rules (Part 254) do not apply to an international itinerary — your bag claim falls under the Convention instead.
Refunds Are Separate
A refund of your ticket or bag fee under U.S. rules is not compensation for your losses. It returns money you paid for a service you did not receive. A refund generally does not prevent you from pursuing compensation under EU261 or damages under the Montreal Convention, although amounts already paid can affect what remains recoverable.
Summary: Compensation Under the Montreal Convention, EU261, and U.S. Law
| Montreal Convention | EU261 | U.S. Law | |
|---|---|---|---|
| Where it applies | International itineraries between treaty countries, including domestic legs on an international ticket | Flights departing the EU on any airline; flights arriving in the EU on an EU airline | Domestic flights; denied boarding and refund rules also cover international flights to and from the U.S. |
| Flight delay | Actual, provable damages up to 6,303 SDRs (about $8,400); airline may prove it took all reasonable measures | Fixed €250 / €400 / €600 for arrival 3+ hours late, plus meals and hotel; no proof of loss needed; extraordinary circumstances defense | No federal cash compensation; ticket refund if arrival is 3+ hours late (domestic) or 6+ hours late (international) and you choose not to travel; airline service commitments may apply |
| Cancellation | Actual damages, usually analyzed as delay; complete non-performance may fall outside the Convention | Refund or rerouting, care, and fixed €250–€600 unless 14+ days' notice, qualifying rerouting, or extraordinary circumstances | Ticket refund if you choose not to travel; no federal cash compensation |
| Denied boarding | Courts divided: treated as delay (Convention applies) or as non-performance (outside the Convention) | Fixed €250 / €400 / €600, plus refund or rerouting and care | Flights departing the U.S.: 200% of one-way fare up to $1,075, or 400% up to $2,150, by check or cash |
| Lost or damaged checked bag | Up to 1,519 SDRs (about $2,000) per passenger; no proof of fault required | Not covered (Montreal Convention applies) | Domestic: at least $4,700 per passenger; refund of the bag fee for a lost bag |
| Delayed bag | Actual damages within the 1,519 SDR limit; written complaint within 21 days | Not covered (Montreal Convention applies) | Domestic: reasonable interim expenses within $4,700; bag fee refund if delayed 12+ hours (domestic) or 15/30+ hours (international) |
| Exclusive or cumulative? | Exclusive basis for damages claims against the airline within its scope; displaces state-law claims and U.S. domestic baggage rules on international trips | Cumulative with the Montreal Convention, but may be deducted from further compensation; not available on inbound EU flights if you already received benefits under non-EU law | Part 250: accept the payment (which may end further liability) or decline and sue for actual damages. Refunds are separate from compensation |
SDR values change daily. Dollar figures are approximate and based on recent exchange rates.
Strict Deadlines You Cannot Miss
| Claim | Deadline |
|---|---|
| Montreal Convention — damaged checked baggage | Written complaint within 7 days of receiving the bag (Article 31) |
| Montreal Convention — delayed baggage | Written complaint within 21 days from the date the bag was placed at your disposal (Article 31) |
| Montreal Convention — any lawsuit | Within 2 years of arrival, scheduled arrival, or the date the carriage stopped (Article 35) |
| EU261 | Set by the national law of the country where you bring your claim; varies by country |
| U.S. domestic baggage | Set by the airline's contract of carriage — often very short for damaged bags |
Filing a Property Irregularity Report at the airport is an important first step, but for international trips you should also send the airline a written complaint within the Article 31 deadline and keep proof of when you sent it.
What to Do When Something Goes Wrong
- At the airport, ask the airline for the reason for the delay, cancellation, or denied boarding — in writing if possible.
- If you are bumped, ask for the written notice of your rights and request payment by check or cash.
- For baggage problems, file a Property Irregularity Report before leaving the airport and photograph any damage.
- Keep every receipt for meals, hotels, transportation, toiletries, and clothing, and document losses such as missed prepaid reservations or lost wages.
- Send the airline a written claim citing the law that applies — 14 CFR Part 250 or Part 254, EU261, or the Montreal Convention — within any applicable deadline.
- If the airline refuses or does not respond, file a complaint with the DOT, or for EU261 claims, with the national enforcement body in the country where the disruption occurred.
Additional Resources
- 14 CFR Part 250 — Oversales (Denied Boarding)
- 14 CFR Part 254 — Domestic Baggage Liability
- 14 CFR Part 260 — Refunds for Airline Fares and Ancillary Service Fees
- Regulation (EC) No 261/2004 (EU261) — Full Text
- Your Europe — Air Passenger Rights (European Commission)
- Montreal Convention — Full Text (Senate Treaty Doc. 106-45)
- DOT — Lost, Delayed, or Damaged Baggage
- File a DOT Complaint
Injured During Airline Travel
Sometimes passengers suffer more harm than a delay, cancellation, or baggage problem. If you or a loved one are injured or killed while traveling with an airline, contact an airline injury attorney.
The Airline Lawyer is America's premier law firm for airline injury cases. Attorney Mahmoud "Mach" Khatib spent over 18 years working for Delta Air Lines and Northwest Airlines. As an airline insider, he has an unparalleled understanding of airline operations and theories of liability. That's why The Airline Lawyer is the ace for your airline injury case.
The Airline Lawyer is the registered trade name of Khatib Law LLC. This article is for informational purposes only and does not constitute legal advice.
