During my five-hour stint in the airport, I consoled myself with the swanky Star Alliance lounge (hello Champagne bar, tea area and outdoor terrace) and the knowledge that, as the minutes ticked by, United would have to abide by the EU 261 law that compensates passengers for delays and cancellations.
One thing I wasn’t prepared for as the clock struck the magical three-hour delay mark: United has added an interesting twist to what is usually a straight-up financial transaction.
What is EU 261
If you’re unfamiliar with the EU 261 rule, it’s a good one to add to your travel “must-haves.” The EU, unlike the U.S. currently, has consumer protections in place for travelers (though the U.S. Department of Transportation did just roll out new airline consumer refund guidelines).
There are several factors for delays and cancellations and how they equate to financial compensation, but the main piece of information to keep in mind is that under EU law, the consumer-friendly EU 261 regulation supports passengers who encounter delays or cancellations. It requires airlines to provide compensation in certain circumstances; one of these circumstances is if your international flight departing from an EU country will arrive more than three hours after your scheduled time.
U.S.-based passengers can file an EU 261 claim under eligible conditions when on a flight departing the EU or when flying with an EU-based carrier en route to the EU.
(To find the right place to file for United compensation, go to Customer Care, choose the "Question" option and then click on "International Passenger Rights.")
What United is offering to delayed European passengers
In the past when I’ve taken advantage of the EU 261 rule (yes, I’ve been delayed before — including an 18-hour overnight in Paris courtesy of Air France — but I digress), it’s been a very cut-and-dried transaction. I simply found the right place on the website to file my claim (legally, the airlines need to inform you of the policy and provide information on how to file); then, I received the U.S. dollar equivalent of the 600 euro compensation directly into my bank account. (You can also choose to have a check sent to you.)
In other words, it’s a cash transaction.
But United has done something pretty clever, giving you the right to waive your cash compensation for either miles or credit.
My offer (and from searching flyer chat rooms, this seems to be consistent with United) was:
- Cash: 600 euros
- Miles: 50,000 United miles
- Credit: $1,000 flight credit
This stopped me in my tracks. What to choose? I couldn’t decide right away, so I broke down the math.
Comparing United compensation offers
On the surface, one would imagine these were all the same. Why else would United offer them? But there was a catch to each one.
First, let’s look at value:
- Cash: 600 euros equals $640.90 at current exchange rates.
- Miles: 50,000 United miles is equal to $650 at TPG’s current valuation of 1.3 cents per mile.
- Credit: A $1,000 flight credit is worth, of course, $1,000.
Then, consider how you can use these options:
- Cash: You can use $650 anywhere and in any way you see fit.
- Miles: United miles do not expire, which is a plus, but finding availability for using miles can be tricky.
- Credit: Flight credits on United can be used to purchase tickets, upgrade seats or make onboard purchases. However, credits expire in one calendar year. You must complete travel within that year, not just book it by the end date.
What I chose
At first glance, I was ready to choose the flight credit since $1,000 is obviously worth more than $650, and the miles weren't that much more valuable than the cash. However, once I discovered the strict one-year deadline for credit usage, I reconsidered. My family already has United credits from flights we had to cancel earlier this year, and since the clock is ticking on those, the added time constraints didn't sound great to me. Since, however, I chose to upgrade to a Polaris seat for $599 (more on that later), I ultimately decided that I'd rather just take the cash and say I broke even.
For other flyers, the miles may make more sense, and if you know you're about to purchase pricey tickets, then the credits are certainly a good choice.
Regardless of what option you would take from United, just make sure you keep an eye on the clock on your next European flight. If you find you're going to be landing more than three hours late, make sure you file for your compensation.
Related reading:
- 6 things you need to know about United Airlines MileagePlus
- The best credit cards for United Airlines flyers
- What is United Airlines elite status worth?
- Maximize your airfare: The best credit cards for booking flights
- The best credit cards to reach elite status
- How to survive basic economy on United Airlines
