Airline liability vs travel insurance: where's the line?

Flight cancellations and travel mishaps often leave passengers confused about who should cover the costs. Airline obligations and the role of travel insurance are frequently muddled, even though they serve entirely different purposes.

Every time a flight is cancelled or a trip goes off plan, passengers ask: who must cover the costs – the airline or travel insurance? In reality, the roles of these two parties are clearly defined, but for many travellers these distinctions remain unclear.

What must the airline cover?

EU Regulation EC 261/2004 requires airlines to compensate passengers for damages if a flight is cancelled, significantly delayed, or if a passenger is denied boarding. Compensation ranges from 250 to 600 depending on the route length. Additionally, the airline is obliged to provide passengers with catering, accommodation, and alternative transport if the delay has caused an extended waiting period.

Airline liability does not extend to situations caused by extraordinary circumstances – such as extreme weather, airport closures due to security incidents, or strikes unrelated to the airline's own staff. In such cases, the airline is relieved of its compensation obligation.

When does travel insurance come into play?

Travel insurance serves a different purpose: it protects the passenger against scenarios that the airline does not cover. For example, if a trip must be cancelled due to illness, a family emergency, or other personal reasons, it is the insurance that compensates for non-refundable tickets and hotel costs. Travel insurance also comes to the rescue if a passenger falls ill abroad and requires medical care or evacuation.

It is important to note that travel insurance does not replace the airline's legal obligations – if the airline is required to compensate, the insurance does not need to do so. Problems often arise when passengers do not know what they are entitled to and approach the wrong party.