AirHelp: US Airlines Wrongfully Rejecting 25% of EU 261 Compensation Claims
The United States isn't known for its strong consumer protections when it comes to air passenger rights, but it doesn't mean that American carriers aren't subject to other nations' laws that protect flyers. Still, US carriers are not fully complying with European Union law on compensation for delays, says AirHelp, a company that assists travelers in recouping compensation from airlines.
Airhelp has released a study claiming that US airlines wrongfully reject between 22% and 32% of passengers' claims under the European Union's EC 261 rule. EC 261 covers, under qualifying circumstances, travelers whose flights have been delayed for more than two hours or cancelled, compelling airlines to compensate affected travelers. Payouts can reach up to 600 euros for flights delayed longer than four hours.
US airlines don't have to compensate passengers for delays when departing from the US on flights to European Union countries. But if they're leaving from an EU airport, then they're bound by law to pay passengers if a flight falls under EC 261's criteria.
"AirHelp found more than 25% of valid claims filed against U.S. airlines for disrupted flights in 2016, 2017 and 2018 were turned away on wrongful grounds by airlines trying to avoid their obligation to travelers," the company said in a release.
AirHelp broke down data from January 1, 2016 through December 31, 2018 for the three US airlines with regularly scheduled flights between the US and countries in the European Union.
| US Ranking | Global ranking for wrongfully rejected claims rate | Airline | Wrongfully Rejected Claim Rate |
|---|---|---|---|
1 | 32 | Delta | 32% |
2 | 42 | United | 23% |
3 | 44 | American | 22% |
Delta is the worst offender, with AirHelp saying it wrongfully rejects nearly one third of claims. However, both United and American aren't too far behind, declining more than one in five claims.
Paloma Salmeron, AirHelp's head of communications, said the company analyzed hundreds of thousands of its own claims submitted to the airlines against a list of flights that it says should qualify for compensation under EC 261. AirHelp sifted through delay reports, weather reports, media updates and other resources to build out a database of flights that should qualify for some sort of reimbursement under the EU law.
"The reason why airlines more often than not can get away with it is because first of all passengers don't know their rights," Salmeron said. Despite the EU regulation, which has been in effect since 2005, airlines are not doing all they should informing passengers that they may be eligible for compensation during a delay, she added.
AirHelp also claims that the number of US travelers eligible to claim compensation under EC 261 rose from 370,000 in 2017 to 407,000 in 2018.
Last year, AirHelp conducted a survey that found 75% of US travelers felt they were not being informed by airlines about their rights, and that less than a quarter of those who experienced a delay or cancelled flights actually filed claims.
"While Delta has not seen or reviewed the claims made in this study, complying with all applicable laws, regulations and rules across our global route map is a top priority," a Delta spokesperson told TPG. An American Airlines spokesperson told us that they "thoroughly evaluate all claims filed" and are reviewing AirHelp’s data.
"We are reviewing the claims in this study," a United Airlines spokesperson told TPG. "United Airlines takes seriously our responsibility to comply with all applicable laws and fully complies with the terms of Regulation 261."
So what can you do if you've been affected by a delay that's covered under EC 261? You can submit a request with the airline directly, but you could find yourself in a prolonged legal battle. However there are a number of services that will fight for payment on your behalf including AirHelp, EUclaim, Flightright and JetRights. However, these companies will take a cut, anywhere from 15 to 25%, of the payout if they're successful.
TPG contributor Benji Stawski has detailed his headache attempting to get compensation from Norwegian -- admittedly, not a US airline -- after a delay of nearly five hours. He's turned to AirHelp, who's brought the case to court. Many commenters responded to a thread in the TPG lounge citing the extensive amount of time it took to get paid after incurring a delay.
Many credit cards offer trip insurance and trip delay protections which can help in the event of a cancellation or delay, and these policies are on top of what can be recouped through EC 261.
This story was updated to include comment from United Airlines.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.