Consumer6 min read8/7/2026

Flight Canceled: When the Airline Must Refund You, Pay for a Hotel, and Pay Compensation

Under Israeli law, a flight cancellation may give rise to several different rights at once: a refund or an alternative ticket, assistance during the wait, and fixed monetary compensation. Even war, closure of airspace, or other extraordinary circumstances usually do not eliminate all of the airline’s obligations, but primarily the obligation to pay fixed compensation.

Numbers and facts

•8 hours — an international departure delay is considered a cancellation
•21 days — the refund deadline after a written request
•45 days — the deadline for payment of fixed compensation
•₪1,530–3,670 — full compensation for an international flight
•2 telephone conversations — part of the free assistance

What Counts as a Flight Cancellation

The Aviation Services Law, 2012 applies to international flights departing from and arriving in Israel, including connecting flights, as well as domestic flights. A cancellation is not limited to a flight that did not operate at all: an international flight that departed at least 8 hours late also falls into this category. A change in the flight number alone is not considered a cancellation. If the airline provided advance notice of the cancellation, the passenger does not need to travel to the airport solely to preserve their rights.

The Passenger Chooses Between a Refund and Another Ticket

In the event of cancellation, the passenger is entitled to choose either a refund of the entire amount paid for the ticket, including fees, taxes, and other mandatory charges, or an alternative ticket to the final destination. The new flight must be offered under conditions as similar as possible and on the earliest available date, or at a later date by agreement with the passenger and subject to seat availability. If no alternative flight was offered at all, Israeli law may entitle the passenger to both a refund and full fixed compensation. The refund must be received within 21 days after a written request by the passenger or travel agent, so a telephone conversation with a representative is insufficient to reliably establish the start of the time limit.

Food, Communication, Hotel, and Transfer

Assistance is provided free of charge and is separate from fixed monetary compensation. It includes food and beverages appropriate to the waiting time, two telephone conversations, and one message by email or fax. If it is necessary to stay for one or more nights or wait longer than planned, the airline must arrange a hotel and transportation between the hotel and the airport. The law also provides for a transfer if the passenger stays at another location within a reasonable distance of the airport. A practical mistake is to book an expensive hotel independently without first requesting assistance from the carrier and preserving the refusal, correspondence, and receipts.

How Much Is the Monetary Compensation?

For international flights, the amount of the fixed payment depends on the distance: 1,530 shekels for a flight of up to 2,000 kilometers, 2,450 shekels for a distance of 2,000 to 4,500 kilometers, and 3,670 shekels for a longer flight. If the passenger agreed to an alternative flight and arrived with a relatively short delay, the amount may be reduced by half—to 765, 1,225, or 1,835 shekels, respectively. The permitted arrival delay for this reduction is up to 2, 3, or 4 hours, depending on the distance. Compensation must be paid within 45 days after a written demand; a method of payment other than cash, bank transfer, or check is possible only with the passenger’s express written consent.

What Extraordinary Circumstances Change

When circumstances beyond the carrier’s control clearly make it impossible to operate the flight—for example, when Israeli airspace is closed—there may be no right to fixed compensation under the law. However, the right to assistance, including food, communication, and necessary accommodation, remains. Special rules for the “Iron Swords” war period excluded fixed compensation for cancellations during several specified periods, including from October 7 through November 30, 2023; for flights from December 1, 2023 through February 29, 2024, the exception applied when notice was given at least 3 days in advance. The Tel Aviv Small Claims Court stated that the absence of a fixed payment under these rules does not necessarily preclude reimbursement of proven loss, such as the cost of a nonrefundable hotel. Double recovery for the same loss under both the Israeli regime and another applicable regime is not permitted.

FAQ

Is a hotel provided if the flight was canceled because of war?

Yes. Extraordinary circumstances may exempt the carrier from fixed monetary compensation, but not from assistance services. If the wait requires an overnight stay, these include a hotel and a transfer between the accommodation and the airport.

Can both a refund and compensation be claimed?

Yes, these are different payments. If the flight was canceled and no alternative flight was offered, the passenger may be entitled to both a refund of the ticket price and full fixed compensation, provided that no statutory exception applies.

What happens if the passenger refuses the proposed alternative flight?

The right to a ticket refund does not remain together with the right to compensation in every situation. For example, if an option was offered 7–14 days before the original departure and would have brought the passenger to the destination no more than 4 hours later, refusing it may leave the passenger entitled only to a refund.

Can the airline issue a voucher instead of paying money?

Fixed compensation is paid in cash, by bank transfer, or by check. Another method of payment is permitted only with the passenger’s express written consent, so the passenger is not required to automatically accept a voucher.

Where and when should a demand be submitted after a flight cancellation?

The demand should be sent in writing to the airline or flight organizer, with the ticket, cancellation notice, selected option, and proof of expenses attached. The 21-day period for the refund and the 45-day period for fixed compensation are calculated from the date of this request.

What to do next

Keep the booking confirmation, cancellation notice, boarding documents, correspondence, and all receipts. Notify the carrier in writing whether you choose a refund or an alternative flight, and separately list the assistance, compensation, and documented expenses you are claiming. If the claim is denied, compare the stated reason with the flight date and the applicable extraordinary-circumstances exceptions.