Flight Delays and Bumped from a Flight

Plane Talk: Coping with Flight Delays | Department of Transportation: "Compensation is required by law only when you are “bumped” from a flight that is oversold. Airlines almost always refuse to pay passengers for financial losses resulting from a delayed flight."

eCFR — Code of Federal Regulations:
PART 250--OVERSALES
§250.1 Definitions.
§250.2 Applicability.
§250.2a Policy regarding denied boarding.
§250.2b Carriers to request volunteers for denied boarding.
§250.3 Boarding priority rules.
§250.5 Amount of denied boarding compensation for passengers denied boarding involuntarily.
§250.6 Exceptions to eligibility for denied boarding compensation.
§250.7 [Reserved]
§250.8 Denied boarding compensation.- (a) Every carrier shall tender to a passenger eligible for denied boarding compensation, on the day and place the denied boarding occurs, except as provided in paragraph (b), cash or an immediately negotiable check for the appropriate amount of compensation provided in § 250.5. (b) Where a carrier arranges, for the passenger's convenience, alternate means of transportation that departs before the payment can be prepared and given to the passenger, tender shall be made by mail or other means within 24 hours after the time the denied boarding occurs.
§250.9 Written explanation of denied boarding compensation and boarding priorities, and verbal notification of denied boarding compensation.
§250.10 Report of passengers denied confirmed space.
§250.11 Public disclosure of deliberate overbooking and boarding procedures.

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