Denied boarding compensation: Why Alaska Airlines owes a $3,244 refund under EU261

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By Christopher Elliott

Sherry Fadely is turned away at the gate when she tries to board her flight in Madrid. Can she get compensation for being denied boarding? And who should pay her?

Question

I was flying home from Madrid to Seattle on Aer Lingus, booked through Alaska Airlines using miles. But the airline denied me boarding even though I had a ticket. I had to buy a new ticket on another airline, which cost me $3,244.

Alaska Airlines wants me to get a statement from Aer Lingus explaining why I was denied boarding. I’ve spoken to Aer Lingus many times and the airline has assured me that my case was being investigated and escalated. But it’s been three months and there’s still no resolution. What are my rights? – Sherry Fadely, Seattle

Answer

This is a complicated case because it involves three airlines and an award ticket, but the bottom line is this: Alaska Airlines should have given you a usable ticket. And Alaska Airlines needs to make this right.

The three airlines are Aer Lingus (the operating airline), Iberia Airlines (the airline that handled the check-in for Aer Lingus), and Alaska Airlines (the airline that issued the ticket using miles from your frequent flier program).

Let’s start with the basics: When an airline denies you boarding, it’s called an “involuntary denied boarding.” This happens when an airline overbooks a flight. The airline is required to compensate you, and the rules vary depending on where you’re coming from and where you’re going.

In the U.S., airlines must follow the Department of Transportation’s rules for denied boarding compensation. These rules are complex. Most passengers receive compensation equal to double the one-way price of the flight they were bumped from and a seat on the next available flight.

In the European Union, airlines must follow the EU’s denied boarding compensation rules, known as EC 261. These rules are more generous than the U.S. regulations, and they require the airline to pay you cash compensation in addition to finding you a new flight. The amount of compensation depends on the length of your flight and the length of the delay. (Here is our complete guide to EC 261.)

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You were denied boarding in Madrid, Spain, which is in the European Union. That means that Aer Lingus is subject to EC 261. But you booked your ticket through Alaska Airlines using miles. Alaska Airlines is a U.S. airline, so do U.S. rules apply? Actually, no. The operating carrier would be subject to EU regulations.

Allowing you to book award tickets through Aer Lingus, which then outsources the check-in to Iberia, may benefit these airlines (or in marketing parlance, allow them to “extend their network”). But for consumers, it’s confusing. I don’t see how this kind of code-sharing really helps consumers, particularly when no one wants to accept responsibility for a flight that goes wrong.

Can you claim compensation for denied boarding on a codeshare flight?

Yes. Under EU261, the operating carrier (Aer Lingus) is legally responsible for denied boarding compensation, even if you booked through a partner airline like Alaska Airlines. However, the ticketing airline (Alaska) must refund unused miles or fees and assist in resolving disputes. Always escalate to both airlines and cite EU261 regulations.

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What you could have done to fix this

You could have appealed this to a manager at Alaska Airlines. I publish the names, numbers and email addresses of the Alaska Airlines executives on this site. And while you might have also applied some heat to Aer Lingus and Iberia, the buck stopped with Alaska Airlines.

My advocacy team and I really struggled with this one. We reached out to Aer Lingus, which agreed that it had mishandled this case but urged you to file a complaint with Spanish aviation regulators. (In other words, they wanted the Spanish government to decide who was responsible.)

So we checked in with Alaska Airlines. The airline reviewed your case and agreed to refund the miles for the unused portion of your ticket and pay you an additional $3,244 to cover the cost of your flight home.

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✋ Your turn

Have you ever been denied boarding due to airline confusion or codeshare drama? Did you receive compensation — or just frustration? Tell us what happened in the comments below.

FAQ’s

What is EU261 and how does it protect air travelers?

EU261 is a regulation that compensates passengers for flight disruptions (like delays, cancellations, or denied boarding) within the European Union. If you’re denied boarding against your will, you may be entitled to cash compensation up to €600, depending on flight distance and delay.

Does EU261 apply to flights booked with airline miles?

Yes. It doesn’t matter if you paid with miles, points, or cash. If you’re denied boarding on a flight departing from the EU, the operating carrier is subject to EU261 — regardless of how the ticket was purchased.

Who is responsible when a codeshare booking fails?

The operating carrier (Aer Lingus in this case) is responsible for honoring the flight and any applicable compensation. However, the airline that issued your ticket (Alaska Airlines) is responsible for refunding any miles or fees — and helping you resolve problems.

Can I get compensation even if I rebooked myself?

Yes. Under EU261, you’re still eligible for compensation if you had to buy a new ticket because you were denied boarding without a valid reason — even if the airline later reimburses your original booking.

What should I do if airlines keep pointing fingers?

Document every interaction and escalate quickly. Contact both airlines involved and file a formal complaint with national aviation authorities (in this case, Spain’s AESA). When both airlines stall, a written complaint and EU261 reference can push your case forward.

Can I file a claim directly with a regulator?

Yes. If an EU airline or flight departs from the EU, you can file a complaint with the national enforcement body in that country. For Spain, that’s AESA (Agencia Estatal de Seguridad Aérea).

Pro tip: Always double-check who operates your flight — and their boarding rules. If you’re flying on a codeshare ticket, confirm your check-in and ID requirements with the actual operating airline. Miscommunication between partners can cost you time and money.

Key takeaways

  • Code-sharing isn’t always seamless. Booking through one airline and flying another can create chaos when things go wrong — and no one wants to take responsibility.
  • EU 261 protections apply — even with award tickets. If you’re denied boarding on a flight departing the EU, you’re likely entitled to compensation under European law, no matter how you booked.
  • The ticketing airline still has duties. Even if Alaska didn’t operate the flight, they issued the ticket and owed the passenger a solution — not a runaround.
  • Three months is too long to wait. A clear policy, timely communication, and accountability from all parties could have saved this passenger $3,244 and a lot of stress.
  • Persistence pays off. With the help of consumer advocacy, Alaska finally refunded the miles and reimbursed the out-of-pocket cost — but it shouldn’t take public pressure to get basic fairness.
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Christopher Elliott

Christopher Elliott is the founder of Elliott Advocacy, a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. He's the author of numerous books on consumer advocacy and writes three nationally syndicated columns. He also publishes the Elliott Report, a news site for consumers, and Elliott Confidential, a critically acclaimed newsletter about customer service. If you have a consumer problem you can't solve, contact him directly through his advocacy website. You can also follow him on X, Facebook, and LinkedIn, or sign up for his daily newsletter.

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