Bumped from an oversold flight? Compensation in the US and Canada

If an airline sells more seats than the plane has and you're removed against your will, you're usually owed cash compensation. In the US, the amount is a percentage of your one-way fare, capped by federal rules, and depends on how late you'll arrive. In Canada, it's a fixed amount that depends on your arrival delay. Volunteers are different: if you give up your seat willingly, you agree the compensation with the airline.

This guide explains both systems, the exceptions, and what to check before you accept a voucher instead of cash.

Volunteer or involuntary: the key difference

US rules (14 CFR Part 250) require airlines to ask for volunteers before bumping anyone. A volunteer accepts whatever the airline offers. Anyone denied boarding without volunteering is "involuntarily" bumped, even if they then accept compensation.

Before you volunteer, the airline must tell you whether you're at risk of being bumped involuntarily and, if so, how much it would have to pay you. If it offers a free or discounted flight, it must disclose the restrictions first, such as fees, blackout dates and advance-purchase rules.

US compensation for involuntary bumping

The rules apply to scheduled flights departing from a US airport on aircraft with 30 or more seats. The amount depends on when the airline's substitute flight is planned to get you to your destination or first stopover, compared with your original arrival time.

Domestic flights:

• Arrive within 1 hour of the original time: no compensation required.

• Arrive 1 to 2 hours late: 200% of your one-way fare, up to $1,075.

• Arrive more than 2 hours late, or no substitute offered: 400% of your one-way fare, up to $2,150.

International flights departing the US:

• Arrive within 1 hour: no compensation required.

• Arrive 1 to 4 hours late: 200%, up to $1,075.

• Arrive more than 4 hours late, or no substitute offered: 400%, up to $2,150.

The fare used is the one-way fare to your destination or first stopover. DOT reviews these limits every two years for inflation, so check the current figures in 14 CFR 250.5.

How you're paid. The airline must pay in cash or by check on the day and at the place you're bumped. If your new flight leaves before the payment can be made, it must send it within 24 hours. It must offer the payment without waiting for you to ask, and give you a written statement explaining your rights and its boarding priority rules.

Vouchers instead of cash. The airline can offer a free or discounted flight instead, but only if the voucher is worth at least as much as the cash, it tells you the cash amount and that you can refuse the voucher, and it discloses all restrictions. You can insist on cash.

Extras. The airline must also refund optional fees, such as seat selection, for services you didn't get.

When US compensation doesn't apply

You may not be owed denied boarding compensation if, for example:

• you didn't meet the airline's check-in, ticketing or reconfirmation requirements

• the flight was cancelled (cancellations follow separate refund rules)

• a smaller aircraft was substituted for safety or operational reasons

• on an aircraft with 60 or fewer seats, you were bumped because of safety-related weight or balance limits

• you were given a seat in a different section at no extra charge

• the airline rebooked you to arrive within 1 hour of your original time

Canada: compensation for denied boarding

Under Canada's Air Passenger Protection Regulations (APPR), if you're denied boarding for a reason within the airline's control, the airline must pay:

• arrival delay of less than 6 hours: $900

• 6 to 9 hours: $1,800

• 9 hours or more: $2,400

These amounts are in Canadian dollars and don't depend on airline size. The airline must pay as soon as it can, and no later than 48 hours after the denied boarding. If it can't pay before your new flight boards, it must confirm the amount in writing. If you arrive later than expected, it must adjust the amount.

The airline must also rebook you or refund you. While you wait, it must provide food, drink, a way to communicate and, if needed, a hotel.

Example: working out a US payment

Sample, synthetic: Daniel holds a confirmed seat on a Northgate Air domestic flight from Atlanta to Denver, paying $240 one-way. The flight is oversold, there aren't enough volunteers, and he is bumped. The airline rebooks him on a flight arriving 3 hours after his original arrival time.

• Delay to arrival: more than 2 hours on a domestic flight.

• Compensation: 400% of $240 = $960, which is under the $2,150 cap.

• He should be offered $960 in cash or by check that day, or a voucher worth at least that much if he chooses it.

Step by step at the gate

1. Ask whether you're a volunteer. If you didn't volunteer, say so. It changes what you're owed.

2. Ask for the written statement about denied boarding compensation.

3. Check the substitute flight's arrival time. That decides the US tier or the Canadian amount.

4. Ask for cash or a check if you prefer it to a voucher.

5. Read voucher terms before you accept: expiry, blackout dates, fees.

6. Keep your boarding pass, receipts and the airline's notes, and write down names and times.

Questions to ask the agent

• Am I being denied boarding involuntarily, or are you asking for volunteers?

• When will the substitute flight arrive at my destination?

• What compensation am I owed, and can I have it in cash or by check?

• What are the restrictions on the voucher you're offering?

• Will my seat or other prepaid fees be refunded?

Have your bumping paperwork checked

EasyToDecode is launching soon. Upload your boarding pass, the airline's written statement and any voucher terms, and it will quote the times and amounts, compare them with the rules that may apply, and point out anything missing. It then drafts a letter you can edit and send yourself. See how it works or join the waitlist.