Victims of flight delays can choose to get their claims from third-party agents or directly from the airline. It depends on the passenger’s preference. Passengers who prefer the former go through compensation recovery companies, while those who prefer the latter go through the airline’s help desk.
Compensation companies are faster in recovery; they often involve legal measures when necessary and set out a certain percentage of the passenger’s compensation as service cost, which is usually deducted after the compensation is recovered.
Others who wish to go directly using the airline help desk are required to have all the evidence of the delay documented, and this may take months to process. This is as opposed to using a service company, which is a lot faster and less strenuous.
Mostly all major flight compensation recovery companies operate a “No-win no-fee” business model. Click2Refund, Compensair, Airhelp, AirAdvisor, Flightright, and their competitors top the list of companies that uphold such models.
While Click2Refund charges 29% with a 0% upfront fee, others charge between 25%-30% depending on the outcome of the case. If it requires a lawsuit, it can go between 25%-36%. Compensair charges 25% and Airhelp charges 35% without legal process; AirAdvisor charges 30% without legal process and 50% with legal process.
Flightright is slightly different. It charges between 20%- 30% (with VAT) without legal process, and 36%–44% (with a 14% legal surcharge) and can differ according to country. All the percentages mentioned are automatically deducted immediately after each claim is redeemed.
The 3-hour rule of the aviation industry is a known term that dictates how flight operations should be done, according to known aviation laws like the European Union (EU)’s regulation,EC 261/2004, and UK law. The 3-hour rule states that a passenger is liable to compensation if their flight arrives at its destination 3 hours later than its original schedule.
The stipulated 3-hour timeframe starts counting the moment the plane door opens. It is measured when the plane arrives, not when it departs. The regulation considers taxi time while calculation flight delay duration. The said delay must be strictly the fault of the airline, e.g., sloppy paperwork, glitches because of bad equipment, etc.
However, the said 3-hour rule for airlines does not apply if the cause of the delay is based on extraordinary circumstances like labor strikes, terrorist attacks, bad weather conditions, or their equivalent. Also, the 3 hours compensation rules do not apply in the United States, since there’s no known aviation laws that upholds such law.
It charges 35%, including VAT. It is deducted after a successful compensation claim. As one of the pioneers of the compensation recovery industry, AirHelp operates strictly on a “no-win, no-fee” business model. This means that the claim is not liable for upfront service costs until the recovery is complete. And should the process fail, they don’t owe them anything.
But in a situation where the said airline refuses to pay up, compelling AirHelp to take them to court, the service charges (withdrawable after a successful claiming process) will increase by 35% (with VAT), making it 50% in total service charge.
No. Compensation claims are not taxable. Although countries treat tax policies around the world differently, they view such money as either funds returned after a bad experience or some general discounted funds on goods.
In the United States, the Internal Revenue Service (IRS) treats tickets from holiday or leisure as a tax-free transaction. The same applies to the UK’s His Majesty’s Revenue and Customs (HMRC). Affected individuals shouldn’t report such monies on their annual tax return.
Affected passengers should also be aware of internal surcharges. While the base delay compensation money is still not taxable, when the case lingers for months in court, the judge may instruct the airline to pay accumulated interest on the compensation during the time the case lasted in court.
Any extra interest accumulated at that time is subject to Standard income tax laws, although it varies by country.
Affected passengers should first choose the recovery process they wish to go for. Whether they choose to use a recovery agency, which is more seamless, or go directly, there are some stipulated steps they need to take.
To file directly, claimants must submit an official request via the airline’s customer service department or official website. This process is free.
But if they choose to use a third-party option, they must be ready to forfeit some percentage of the recovered funds. Again, they can do this for free.
Whichever option they go for, it’s important to first:
All the evidence confirming a possible flight delay from the said airline must be collected and documented. All screenshots or other digital copies confirming the event, e.g., boarding passes, a photo of the airport departure board, notification email from the airline, booking confirmation email, etc. There’s also a need to submit receipts used in the purchase of drinks, food, and accommodation, e.g., hotels (if they’d slept over) while the delay lasted.
It’s either the affected passenger goes for a direct filing method and gives 100% of the recovered money or leverages a third-party alternative and forfeit 25%-50% depending on how the process turned out. For direct application of claim:
The airline is expected by law to review and respond to the application within 4 to 8 weeks. But this can vary depending on the occasion. It can take a longer time, months to respond if there are winter storm disruptions or hectic summer holidays.
Affected passengers are advised to escalate the process if they think they have been wrongly rejected by the airline. This is common when the airline, in their usual claim, associates the delay to “extraordinary circumstances,” e.g., bad weather conditions. Such passengers can choose to report to the country’s civil aviation authority. Note: it can only be the country where the airline took off.
For example, if the plane took off in the UK, passengers would have to complain to the UK Civil Aviation Authority (CAA), or the Aviation Consumer Protection division of the US Department of Transportation if it’s in the United States.
They might as well use the alternative route, leverage independent mediation bodies like Consumer Dispute Resolution Limited and Centre for Effective Dispute Resolution in the UK, The Agency for Passenger and Traveler Rights in Austria, or the European Online Dispute Resolution (ODR) if they are in Europe.
It depends on the country of the delay since there are differences in laws and currencies. For EU and UK passengers, their flights must leave or arrive at any UK or EU airport and fly on EU or UK airports to qualify for a particular cash compensation.
Also, according to the EU regulations, the delay must be caused by the airline. The compensation tiers are calculated according to the flight distance.
Short hauls below 1,500 km /932 miles, which is equivalent to flying from London to Paris, are €250 (approx. $270). But this can only take effect if the passenger arrives 3 hours later. Long-haul flights, equivalent to flying from Rome to Moscow, measuring 3,500 km / 2,175 miles, get €300 (approx. $325) when delayed for between 3 and 4 hours. Such passengers are also eligible for €600 (approx. $650) when their flight is delayed for over 4 hours.
Things are a little different in Canada. The amount of compensation an affected passenger is liable to get depends on how long the delay lasts and how big the airline is. When it’s a big airline company (airlines with over 10,000 employees, according to APPR), victims of a 3-6-hour delay are liable to $400 CAD (approx. $290).
When the delay is between 6-9 hours, affected passengers get $700 CAD (approx. $510). And when it’s over 9 hours, passengers are eligible for $1,000 CAD ($730).
Smaller airline companies, usually regional carriers, have a much lower compensation arrangement: $125 CAD - $500 CAD depending on the duration of the delay.
Unfortunately, the United States does not have an aviation law specifically directing airlines to pay delayed passengers a specific amount as compensation if the delay happened in the United States. But there’s an equivalent law by the country’s Department of Transportation that protects the rights of passengers.
In the event of a major delay of over 3 hours on domestic flights that led the passengers to cancel their flight, the airline is obliged to make a 100% cash refund for the purchased ticket. Also, they are meant to be responsible for delayed passengers’ vouchers and meals, enough to cover those 3 hours of delay. They are also responsible for the passengers’ accommodation if they are stuck overnight due to such a delay.
New aviation laws have surfaced in the United States and the European Union. In 2024, the United States, through the Department of Transportation (DOT), introduced the Automatic Refunds Rule. This latest law has compelled airlines to automatically make cash refunds instead of the usual vouchers.
They also gave a specific definition of the term “flight delay.” In the United States aviation industry, a major delay is measured from 3-6 hours. The new law also facilitates fast payments. Victims of flight delays can now expect their payment within 7 business days, and 20 calendar days if the payment was made with a credit card.
In Europe, airlines are now required to do the paperwork instead of the passengers going through the stress of getting the compensation claim form. Airline companies are now mandated by law to issue passengers a ‘pre-filled’ compensation recovery form with clear instructions.
The Indian law under the Indian Directorate General of Civil Aviation (DGCA), like the EU regulations, protects flight delay passengers. These laws are dubbed the CAR Section 3, Series M, Part IV. Under this law, the amount of compensation claims depends mostly on how long these passengers are forced to wait.
The airline is expected to provide food and drinks for the affected passengers if the delay is more than 2 hours. When it’s a longer delay, 6 hours or more, the passenger is required by law to choose whether to cancel the flight and demand a full refund or request an alternative flight at no extra cost.
To be eligible for flight compensation, a passenger must have arrived at their final destination 3 hours later than originally intended. And the cause of the delay must be the airline. The passenger’s flight must successfully land, and the doors must open 3 hours later than the scheduled time.
Passengers must note that it doesn’t matter if the plane took off 4 hours late, or for some reason spent 2:58 in the air. In such a situation, such a passenger is not considered eligible. Also, passengers are advised to submit the application for their claim within the stipulated legal time frame.
In the UK, affected passengers are required to apply for their claim within 6 years of the disruption. Passengers are given up to 2 - 6 years in most EU countries: 3 years in France, 2 years in Spain, and 6 years in the UK.
Click2Refund, AirHelp, Compensair, and Latebird make it on top of the list of best flight compensation recovery companies. Click2Refund and Latebird look like the most ranked because of their low commission charges, with or without legal process, as well as their favorable “No-win, No-fee” arrangement without geo-restrictions.
While Click2Refund charges 29% service commission charges on their services, with or without legal process, Latebird is lower with 15%. But based on popular industry reviews, Click2Refund has gained too many recommendations to rank as the best flight compensation company globally.