When Air Travel Goes Wrong: Know Your Rights

Posted on Jun 22, 2026 | by Amoni Liddell

We all look forward to a holiday. Booking the flights, packing the bags, counting down the days… but what happens when things don’t go to plan?

Flight Delays and Cancellations

Let’s start with a very common problem: cancelled and delayed flights.

– Flights within and departing Australia are covered by consumer guarantees, meaning airlines must provide services within a reasonable time, regardless of their terms and conditions.

– If a delay or cancellation is within the airline’s control (e.g. mechanical problems or staffing issues), you’ll usually get a refund or rebooking.

– If it’s outside their control (e.g. adverse weather, air traffic control issues, or political unrest), airlines don’t have to refund or rebook.

– Compensation for delay is available but limited and only applies to significant delays for international travel after your journey has commenced and when the circumstances are within the airline’s control. Compensation is capped at around AUD13,000 for proven losses like replacement flights, accommodation, loss of wages and incidentals.

– If you are travelling within the EU or UK and on flights operated by EU carriers, you may be entitled to compensation for delay, cancellations or denied boarding when the circumstances are within the airline’s control. Compensation amounts vary depending on how far you are travelling and are capped at €600 ($1,000) plus a refund or rerouting. It’s not automatic though. Airlines won’t offer it, and you will have to ask.

Lost, Delayed or Damaged Baggage

You’ve arrived at your destination, but what happens if your luggage doesn’t arrive with you, or it turns up damaged? In these situations, you may be entitled to compensation; however, it is generally capped unless you have declared a higher value for your baggage and contents at check-in.

– For domestic flights within Australia, compensation is typically limited to $3,000 for checked baggage and $300 for carry-on items. For international travel, the cap is usually around $2,700 for all baggage combined.

– It’s also important to note that if the damage is caused by a defect in the bag itself, it may not be covered.

– Timing is critical. Airlines generally require damaged baggage to be reported within 7 days, and delayed baggage within 21 days. Missing these deadlines can result in losing your right to claim compensation.

So, what is the takeaway?

Airline compensation is limited.

That’s why travel insurance is so important.

If something goes wrong on your trip, come and speak to one of our experienced travel lawyers to understand exactly what you’re entitled to recover.

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