When searching for the phrase "I'm sorry to hear that" I can only find examples of it being used as a way to express condolences to someone:
Person A: “My goldfish died yesterday…”
Person B: “Oh, I’m sorry to hear that! How are you holding up?”
But is it also correct to use the phrase when both parties are equally affected by the bad news?:
Person A: “It’s going to rain tomorrow, so we have to cancel our trip to the beach.”
Person B: “I’m sorry to hear that! Do you want to go visit the museum instead?”
And is it still correct when the person receiving the news has more reason to feel upset?:
Person A: “Unfortunately all of our flights are fully booked.”
Person B: “I’m sorry to hear that. I guess I’ll just have to take the train instead.”
Best Answer
Yes, it can be used in that context. It's more formal in that sort of situation, and usually conveys a sense of disapproval. Also wouldn't be used for very very bad news.