If you have been removed from your flight, you are entitled to compensation up to 400% of the ticket price

It was a tough season for travelers. Airlines have delayed or canceled thousands of flights, leaving many people stranded. Even flights that depart smoothly and on time can experience more bookings than there are seats on the plane. And that means some unlucky passengers won't fly anywhere. What to do in such situations, said the publication Fool.

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In the case of bumping, the airline selects passengers so that they give up their seats during overbooking (a situation where there are more passengers than there are seats on the plane when boarding). If this happens to you, the airline must pay you for the inconvenience.

How compensation works if you are removed from a flight through overbooking

Sometimes an airline has more passengers per flight than seats. This usually happens due to overbooking of tickets. In this situation, the airline must first ask passengers to voluntarily relinquish their seats in exchange for compensation.

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If there are no volunteers, the airline will select passengers who will give up their seats. It should establish fair criteria to decide who to take off the flight, such as when the passenger checks in or the fare purchased.

If you have been removed from the aircraft due to overbooking, you may be entitled to compensation for denied boarding. There are situations where airlines do not need to pay, including on charter flights and flights departing from abroad. The US Department of Transportation (DOT) lists the full list of these exclusions on their resale page. Otherwise, you are eligible for Denied Boarding Compensation if:

• you have a confirmed booking;
• you checked in for the flight on time;
• you arrived at the boarding gate on time;
• the airline cannot take you to your destination within one hour of your flight's original arrival time.

Amount of compensation

The amount airlines have to pay passengers depends on the length of the delay and whether it is a domestic or international flight. Here are the compensation amounts for denied boarding on domestic flights:

• one to two hours late arrival: 200% of one-way fare (airlines may limit compensation to $775 if one-way fare exceeds $775);
• arrival delayed by more than two hours: 400% of the one-way fare (airlines may limit compensation to $1550 if a one-way fare exceeds $1550).

For international flights, the amount is 200% of the one-way fare for a delay of one to four hours, with the same cap of $775. And 400% - for a delay in arrival of more than four hours with the same limit of $1550.

These are amounts that airlines are required to reimburse by law. They can pay more if they want. The airline must offer compensation at the airport on the same day. If it provides alternative transportation that departs before the company can pay the passenger, then the carrier must pay the passenger within 24 hours of the conflict of interest.

What about flight delays and cancellations?

The above rules only apply if you are dropped off due to an overbooking. They do not apply if your flight is delayed or cancelled.

Unfortunately, there is no protection against delayed flights in the US. You may be eligible for a refund if your flight is significantly delayed, but there is no strict definition of a significant delay. DOT determines this on a case-by-case basis.

If your flight is cancelled, most airlines will rebook you. But if you decide to cancel your trip entirely, you are entitled to a refund.

Although legal protection in such situations is limited, all major US airlines have made commitments about what they will do in the event of controlled delays and flight cancellations. These may include:

• your flight being rebooked by the same airline after a cancellation or significant delay;
• providing or paying for food if you wait three hours or more;
• provision of a hotel in case of cancellation or overnight delay.

How to protect yourself from problems

Flight problems happen and there is no guarantee that you won't experience them. Because DOT protection is limited, it's important to take your own steps to protect yourself.

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The best option is to take out travel insurance. Most plans cover flight delays or cancellations. While this is something you can buy, there are also many popular travel credit cards that offer free travel protection. If you want to avoid extra travel expenses, getting one of these credit cards is worth it.

No matter how prepared you are, dealing with a flight delay or conflict of interest is uncomfortable. But having travel insurance and knowing when you are eligible for compensation will at least help you financially.

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