If a flight is delayed, does Southwest offer compensation? southwest delay compensation policy offers compensation for flight delay . However, you must be competent in accordance with its policy in order to receive compensation for the delayed flight. If your flight is delayed, you have the option of canceling your reservation or taking the airline's alternative flight. If you have a refundable fare and cancel your reservation for a delayed flight, you might receive a full refund; however, if you have a nonrefundable fare, you will receive a flight credit that can be used for a future reservation.