You're sitting at the gate. The board flips to "Delayed." Three hours later: "Cancelled." The airline hands you a $10 food voucher. You smile, nod, and go find a seat near an outlet.
What you probably should have done: asked for $1,400 in cash. Because under DOT regulations, that's what you may be owed.
The Rule That Airlines Don't Advertise: 14 CFR Part 250
The Department of Transportation's rule on denied boarding compensation is one of the strongest consumer protection rules in the airline industry — and one of the least-known. Here's how it works:
When an airline involuntarily bumps you from an oversold flight, they owe you cash compensation based on the value of your ticket and the length of the delay getting you to your destination:
| Delay to Destination | Domestic Compensation | International Compensation |
|---|---|---|
| 1–2 hours (domestic) / 1–4 hours (intl) | 200% of one-way fare, max $775 | 200% of one-way fare, max $775 |
| Over 2 hours (domestic) / Over 4 hours (intl) | 400% of one-way fare, max $1,550 | 400% of one-way fare, max $1,550 |
This compensation is in addition to a full refund of your original ticket. The airline must pay it in cash (or check) unless you voluntarily agree to accept a voucher instead. Never let an agent tell you that a voucher is your only option — it isn't.
What About Cancellations?
The DOT's rules on cancellation refunds are clear: if an airline cancels your flight for any reason, you are entitled to a full cash refund — not a voucher, not travel credit — to your original payment method. This applies even if the ticket was non-refundable.
The rule was significantly strengthened in 2024. Airlines can no longer steer passengers toward vouchers as the default option when a cancellation occurs. If you were offered only a voucher for a cancelled flight and you didn't explicitly choose it, you likely have grounds to dispute and request the cash refund.
Key rule: If an airline cancels your flight and you request a refund, they must process it within 7 business days (credit card) or 20 calendar days (other payment methods), per 14 CFR § 259.5. If they don't, that's grounds for a formal DOT complaint.
Significant Delays: When Do You Get a Refund?
Even if a flight isn't cancelled, you may be entitled to a refund if:
- A domestic flight is delayed by 3 or more hours
- An international flight is delayed by 6 or more hours
- A significant change is made to your itinerary (different departure airport, different destination airport, more connections than booked)
This is a relatively new protection (formalised in 2024) and many airline agents are either unaware of it or trained not to mention it. If you experience a qualifying delay and don't want to rebook, you can request a full refund and deplane.
Lost or Damaged Baggage
DOT rules also protect your bags. For domestic flights, airlines are liable for up to $3,800 per passenger for lost, damaged, or delayed baggage. For international flights, the Montreal Convention sets a cap of approximately $1,800.
Airlines must acknowledge a lost baggage claim within 30 days and resolve it within 30–60 days. If your bag arrives damaged, report it before leaving the airport — most airlines have a very short window (24–48 hours) to accept damage claims.
How to Claim What You're Owed
Start at the gate or customer service desk — but don't expect an easy conversation. More effective is a formal written demand citing the specific regulation. A letter that references 14 CFR Part 250 (denied boarding), 14 CFR § 259.5 (refund timelines), or the DOT's 2024 refund rule almost always gets a different — and faster — response than a verbal complaint.
If the airline doesn't resolve your claim within 30 days of a written request, you can file a formal complaint with the DOT at transportation.gov/airconsumer. The DOT takes airline complaints seriously, and airlines that accumulate complaints face formal enforcement actions.
ClawBack can help: Upload your boarding pass, delay notice, or flight itinerary, and our AI drafts a formal dispute letter citing the exact DOT rule that applies to your situation. You review it and send it directly to the airline. Start free →
One Final Note on "Vouchers"
Airlines frequently offer vouchers as compensation, and agents are often trained to present them as the default or only option. A voucher can be acceptable if it's genuinely equivalent in value and you're happy with it — but it is always voluntary. You can decline it and request cash. If you weren't told that, and you've already accepted a voucher for a situation where cash compensation was legally owed, you may still have recourse — particularly if the offer was made under misleading circumstances.
Know your rights. A $10 food voucher is not a substitute for $1,400 in cash compensation. Not even close.