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The Biden administration is considering new rules that would require airlines to compensate passengers for significant delays caused by the carrier. The U.S. Department of Transportation has launched a rule making process to establish baseline standards for what airlines should provide in case of disruptions like cancellations or lengthy delays due to airline-related issues. Proposed guidelines include compensation ranging from $200 to $775 for delays of at least three to nine hours. The department is also considering whether smaller airlines should pay less and if compensation should be required if passengers are notified in advance of the delay. Other proposals include rebooking passengers at no cost, providing meals, lodging, and transportation for stranded passengers.
Over 60% of long delays on domestic flights were airline-caused in 2022 and 2023, affecting millions of passengers. The U.K., E.U., Canada, and Brazil already have regulations in place to compensate passengers for significant delays. Currently, airlines are only required to refund passengers for canceled flights, with some providing credits or vouchers for disruptions. Major U.S. carriers have already committed to rebooking and providing meals during disruptions, but the DOT noted that airlines can change their customer service commitments at their discretion.
Airlines For America, representing major carriers, criticized the proposed rules, arguing that they could increase ticket prices and adversely impact operations. The group called on the Biden administration to address other issues like the air traffic controller shortage and FAA infrastructure. The public has 60 days to submit comments on the proposed rules.
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