Until 1978, U.S. airlines were regulated by the government and subject to Rule 240, which required airlines to book passengers on another flight or carrier if the airline was responsible for a canceled flight. Now that airlines are deregulated, each has its own policy regarding flight cancellations, and there is no standard rule that must be enforced. Airlines are only legally required to extend flight compensation when customers are removed from oversold flights. Still, because they strive to keep their customers happy, most U.S. airlines will rebook passengers of canceled flights on the next available flight at no additional charge. The exact rights passengers have regarding cancellations can be found in the contract of carriage and may include vouchers for meals, hotels and ground transportation. When traveling in the European Union, passengers have the right to monetary compensation for any canceled flight, except when the cancellation is caused by unavoidable "extraordinary circumstances," which can include weather, security issues and political instability.
Passengers must also be mindful of what rights they are not guaranteed in the event of a flight cancellation. While airlines will normally refund or rebook a ticket in the case of cancellations caused by air traffic delays, mechanical issues, and other unpredictable problems, they are not responsible for any personal inconveniences caused by a flight cancellation. As such, penalties for missed days from work and bank overdrafts are subject to employer and bank policies. In addition, passengers from canceled flights do not typically have priority on the next available flight and must wait until those booked on that specific flight have been seated.
Passengers are advised to consider the possibility of cancellation when booking a flight. If possible, choosing an earlier flight is best, because later flights are more likely to be delayed or canceled than those in the morning and offer fewer rerouting options if a cancellation does occur. Flights with minimal connections and less congested airports also offer more options in case of flight cancellation, especially during holidays, peak travel times, or periods of inclement weather. When dealing with airline agents, being assertive, yet friendly is key. Because airlines would rather have passengers fly out on later flights than change carriers, passengers must know the rights guaranteed to them by airline cancellation policy if they wish to fly out on an earlier flight with a partner airline. Similarly, knowing what possible alternate flights are available can simplify a flight transfer in case of flight cancellation. Finally, membership in elite-level customer programs may facilitate flight changes.