4 financial steps to take if your flight is canceled or delayed – Orange County Register

By Sally French | NerdWallet

Facing a flight cancellation can be a daunting experience, even for seasoned travelers. However, the good news is that flight cancellations have become less common. In the first three months of 2023, the cancellation rate among U.S. airlines dropped to 1.7% from 4.1% in the same period of 2022, according to the U.S. Department of Transportation’s Air Travel Consumer Report. Unfortunately, if you find yourself in that 1.7% bucket, a cancelled flight can have a significant impact on both your travel plans and your finances. To mitigate the costs and receive the compensation you deserve, follow these steps:

1. Head to the customer service desk

If you’re already at the airport, make your way to the customer service desk immediately. Time is of the essence, as other passengers from the cancelled flight will also be vying for limited seats on the next available flight. Additionally, the customer service desk is where you can inquire about flight delay compensation. Although not legally required in the U.S., many airlines have made customer service pledges for controllable cancellations and delays. This could include meal vouchers or travel vouchers for delays lasting three hours or more, as outlined in the DOT’s Airline Customer Service Dashboard. Even if your circumstances don’t qualify for official compensation, it doesn’t hurt to ask the gate agent for bonus miles or meal vouchers for shorter delays.

In Europe, air travelers have even more rights. Under EU flight delay compensation rules, passengers are entitled to compensation of up to 600 euros, depending on the distance of the trip and the length of the delay. If you’re not at the airport when you learn about the delay or cancellation, be sure to contact your airline’s customer service through phone, mobile app, or social media accounts.

2. Arrange for a new flight

All major U.S. airlines have committed to rebooking passengers on the same airline at no additional cost. In many cases, airlines will automatically rebook you, eliminating the need to wait in long customer service queues. If you prefer an alternative flight that lands at the same or nearby airport as your original destination, you can usually request a change at no extra charge. Additionally, some airlines allow you to rebook on a partner airline, such as Alaska Airlines and American Airlines, with no additional cost. However, this assumes that the partner airline operates the route you need to take. Keep in mind that if you decide to book with a different airline, you will likely bear the full cost, which can be expensive, especially for last-minute airfare.

While U.S. airlines are legally obligated to provide refunds for significant delays or cancellations, this might not be helpful if you initially purchased a discounted $49 fare that has since been cancelled, and you’re now forced to book last-minute with a different airline for $499. In this case, the $49 refund on top of a $499 airfare can be quite frustrating.

3. Assess your travel insurance coverage

If you have travel insurance, review your policy to see if it includes coverage for trip interruptions. If it does, you may be eligible for reimbursement of additional expenses incurred due to the cancellation. The best travel insurance policies can reimburse you for several thousand dollars in costs. In instances where major airlines provide complimentary hotel accommodations for cancellations, travel insurance can still be helpful if the airline you’re flying with doesn’t offer this benefit. It can also cover alternate transportation arrangements, such as a rental car or a flight on another airline. Verify that the reason for your claim is covered by your policy, as not every scenario is protected. Severe weather is typically covered, while a country closing its borders due to a pandemic is usually not covered, unless you have the most comprehensive “Cancel For Any Reason” policy.

Additionally, you might already have travel insurance without realizing it. Many travel credit cards offer trip insurance as a perk for using the card to pay for your trip. Check your credit card’s guide to benefits, which is usually sent to you upon approval or available online, to determine if you have this coverage.

4. Locate your checked bags

While you’re at the customer service counter, inquire about the status and location of your checked bags. Your bags might still be on the aircraft or they could have been offloaded. Ideally, your bags should have luggage tags with your contact information to reduce the stress of potentially losing your belongings. However, it’s important to stay in communication with airline staff to minimize the risk of being separated from your bags for an extended period.

Although essential items like medication should always be kept in your carry-on, the customer service counter can assist you in retrieving your checked bags if necessary. Most travel insurance policies include some form of lost luggage reimbursement, allowing you to recoup the value of the items you packed but lost if your bags never make it to your destination due to a cancelled flight.

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Sally French writes for NerdWallet. Email: [email protected]. Twitter: @SAFmedia.

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