Package holiday flight delays and cancellations: who pays what

Two sets of rights, two different companies

The two systems are designed to sit side by side. UK261 Article 3(6) says the regulation does not affect your rights under the 2018 Regulations, and does not apply where a package tour is cancelled for reasons other than cancellation of the flight. Regulation 16(7)–(8) of the 2018 Regulations says the package rules do not affect your rights under air passenger rights legislation or the international conventions, and that you may claim under any of them. The EU Directive (Article 14(5)) works the same way.

Is your trip a package?

Under regulation 2 of the 2018 Regulations, a package is a combination of at least two different types of travel service – for example a flight and a hotel, or a flight and car hire – for the same trip, where, among other cases:

• one trader puts them together before you sign a single contract;
• they are bought from one point of sale and selected before you agree to pay, or sold at an inclusive or total price;
• they are advertised or sold as a "package" or similar; or
• they are bought from different traders through linked online booking processes, where your details are passed on and the second contract is made within 24 hours of the first booking.

A linked travel arrangement is looser: separate contracts with each provider, but facilitated by one trader (for example a "book a hotel too" prompt after you buy a flight, taken up within 24 hours). It gives much weaker rights – mainly insolvency protection – and the organiser is not responsible for the whole trip. A flight and hotel booked separately by you on different websites is neither: you have only your EU261/UK261 rights against the airline and your contract with the hotel.

Who pays what when the flight goes wrong

Claiming fixed compensation from the airline

Nothing about a package reduces your air passenger rights. If you arrived at your destination 3 or more hours late, your flight was cancelled with less than 14 days' notice, or you were denied boarding, the operating airline owes:

Charter and holiday airlines are no exception. Because the outbound and return flights are separate flights, each one is assessed on its own: a delayed return from Palma is covered by EU261 (departure from the EU), a delayed outbound from Manchester by UK261. See UK261, flight delay compensation and our airline guides for TUI Airways and Jet2.

The limitation period is the normal one for your claim. Germany's Federal Court of Justice confirmed on 4 June 2024 (X ZR 62/23) that the regular three-year period applies even when the flight was part of a package, rejecting the shorter two-year period for package travel claims. In England and Wales the period for UK261 claims is six years. See time limits by country.

Claiming from the tour operator (organiser)

Under regulation 15 of the 2018 Regulations the organiser is responsible for performing all the travel services in the package, whether it provides them itself or uses other suppliers such as the airline. If a service is not performed as agreed – a lack of conformity – you must tell the organiser without undue delay, and the organiser must put it right within a reasonable period unless that is impossible or disproportionately expensive.

Regulation 16 then gives you:

• an appropriate price reduction for any period of lack of conformity, unless the organiser proves it was your fault;
• appropriate compensation for any damage you suffer as a result, without undue delay – unless the organiser proves the problem was your fault, the fault of an unconnected third party and unforeseeable or unavoidable, or due to unavoidable and extraordinary circumstances;
• limits that mirror the international conventions: where a convention such as the Montreal Convention limits compensation, the same limits apply to the organiser (reg 16(5));
• a rule against double compensation: the organiser must deduct what you received under air passenger rights law or the conventions (reg 16(9)).

Whether a flight delay amounts to a lack of conformity depends on the contract and on how much of the holiday was lost. A delay that costs you a day of a week-long holiday, a missed pre-booked transfer, or a hotel night you paid for but could not use are the kind of losses to raise with the organiser. The organiser can also rely on the extraordinary-circumstances defence, which is worded differently from EU261's, so a refusal by the airline does not automatically mean a refusal by the organiser – or vice versa.

Regulation 18 also requires the organiser to give appropriate assistance without undue delay to a traveller in difficulty, including help with communications and finding alternative travel arrangements.

When the holiday is changed or cancelled

• Significant changes before departure (regulation 11): if the organiser has to significantly alter a main characteristic of the package – such as flight times – it must tell you promptly, set a reasonable deadline for your decision, and offer you the choice to accept or to end the contract without a fee (taking a substitute package if offered). If you end it, all payments must be refunded within 14 days. ABTA says a change of more than 12 hours on a 14-night holiday is generally considered significant.
• Cancellation by the organiser (regulation 13): the organiser can cancel for too few bookings (with set notice periods) or because of unavoidable and extraordinary circumstances. You get a full refund; in those two cases no additional compensation is due.
• Cancellation by you (regulation 12): you can cancel any time before departure for a reasonable termination fee – or with no fee and a full refund if unavoidable and extraordinary circumstances at or near the destination significantly affect the package or the carriage of passengers to it.
• Refund deadline (regulation 14): any refund due on termination must be paid without undue delay and in any event not later than 14 days after the contract ends.

For the flight ticket itself, EU261/UK261 Article 8(2) excludes a separate ticket refund from the airline where you have a right to a refund under package travel law. The Court of Justice applied this in HQ v Aegean Airlines (C-163/18, 10 July 2019): the existence of a refund right against the organiser was enough to rule out a ticket refund claim against the airline, even where the organiser could not pay. That exclusion is about refunds only; fixed compensation for a cancelled flight can still be claimed from the airline.

If the travel company goes bust: ATOL

ATOL (Air Travel Organisers' Licensing) is the UK's financial protection scheme for flight-inclusive packages sold by UK travel companies, run by the CAA under the Civil Aviation (Air Travel Organisers' Licensing) Regulations 2012. If an ATOL holder fails, the CAA's guidance is that you can claim a refund – or, if you are already abroad, be helped to finish your trip and get a flight home. Look for the ATOL number when you book and keep your ATOL certificate.

ATOL does not pay compensation for delays or cancellations by an airline that is still trading; it is about insolvency. Packages without a flight are protected by other insolvency arrangements required by Part 5 of the 2018 Regulations. In the EU, Article 17 of the Package Travel Directive requires organisers to provide insolvency protection in every Member State.

Step by step: what to do

1. At the airport: ask the airline for meals, refreshments and, if needed, a hotel; keep receipts for anything you buy. Tell the tour operator's representative or helpline about the delay and any knock-on problems (transfer, first hotel night).
2. Note the facts: scheduled and actual arrival times, the reason given, and any changes to your holiday.
3. Claim fixed compensation from the operating airline – it is shown on your boarding pass (for example TUI Airways or Jet2.com). Our complaint letter generator drafts the letter.
4. Complain to the organiser in writing about any lack of conformity: lost holiday time, unused services, extra costs. Say you are claiming under the Package Travel and Linked Travel Arrangements Regulations 2018.
5. Escalate if needed: for the airline, ADR or the CAA (see how to claim); for the organiser, its trade body's dispute scheme (Citizens Advice notes that ABTA's mediation scheme charges a fee) or the courts. A letter before action usually comes first.

Frequently asked questions

Can I claim flight delay compensation on a package holiday?

Yes. EU261 and UK261 cover passengers on package holidays in the same way as passengers who booked a flight only. If your flight arrived 3 or more hours late and the cause was not extraordinary circumstances, the operating airline owes £220–£520 (UK261) or €250–€600 (EU261) per passenger. Germany's Federal Court of Justice confirmed in 2024 that such claims follow the normal limitation period even when the flight was part of a package (BGH, X ZR 62/23).

Do I claim from TUI or Jet2holidays, or from the airline?

Fixed delay compensation is claimed from the operating airline – for example TUI Airways or Jet2.com – because EU261/UK261 place that duty on the airline. Problems with the holiday as a whole (lost days, missed transfers, a worse hotel, a cancelled package) are claimed from the organiser under the Package Travel Regulations. With the big UK holiday companies the airline and the organiser are often in the same group, but they are legally separate claims.

Who refunds me if my package holiday flight is cancelled?

The organiser. If the organiser cancels the package, or you end it because of a significant change, it must refund what you paid within 14 days (regulation 14 of the 2018 Regulations). Article 8(2) of EU261/UK261 excludes a separate ticket refund from the airline where you have a refund right under package travel law; the Court of Justice confirmed this in HQ v Aegean Airlines (C-163/18, 2019). Fixed compensation from the airline may still be due.

Does ATOL cover flight delays?

No. ATOL is financial protection: it gets you a refund, or a flight home, if a UK travel company that sold you a flight-inclusive package goes out of business. It does not pay compensation for delays or cancellations caused by an operating business. For those, use EU261/UK261 and the Package Travel Regulations.

Is a long flight delay a "significant change" to my holiday?

It can be, depending on the length of the change and of the holiday. ABTA says a change of more than 12 hours on a 14-night holiday is generally considered significant. If the organiser makes a significant change before departure, you can accept it, take a substitute package, or cancel for a full refund within 14 days (regulation 11).

Can I get compensation from both the airline and the tour operator?

You can claim under both sets of rules, but not be paid twice for the same thing. Regulation 16(9) requires the organiser to deduct compensation you received under air passenger rights law or the international conventions from what it pays you, to avoid overcompensation. In practice, the organiser pays for the loss of holiday enjoyment or services not provided; the airline pays the fixed delay compensation.

General information, not legal advice; we are not a law firm. We are an independent guide and an affiliate partner of AirHelp – see our affiliate disclosure.

Sources

1. The Package Travel and Linked Travel Arrangements Regulations 2018 (SI 2018/634) – legislation.gov.uk
2. PTRs 2018, regulation 16 – price reduction and compensation – legislation.gov.uk
3. PTRs 2018, regulation 11 – alteration of other package travel contract terms – legislation.gov.uk
4. PTRs 2018, regulation 14 – refunds in the event of termination – legislation.gov.uk
5. Directive (EU) 2015/2302 on package travel and linked travel arrangements – EUR-Lex
6. Regulation (EC) No 261/2004 – UK version, Article 3 (scope, package travel) – legislation.gov.uk
7. Judgment C-163/18 HQ and Others v Aegean Airlines (10 July 2019) – Court of Justice of the EU
8. BGH X ZR 62/23 (4 June 2024): three-year limitation also for package flights – beck-aktuell
9. ATOL protection – consumers – UK Civil Aviation Authority
10. My flight's been cancelled – what will happen to the rest of my holiday? – ABTA
11. Claim compensation for a holiday – Citizens Advice

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