The outgoing US administration is asking the public whether airlines should have to compensate passengers when flights are delayed and cancelled. If imposed, the new rules would require airlines who are to blame for a delay to pay at least $200 in cash compensation to passengers delayed by under six hours – a figure that would increase to up to $775 for delays of nine hours or more.
The Department of Transportation (USDOT) announced on 5 December 2024 that it was inviting the public to comment over next 60 days on whether passengers should be given cash compensation, rebooked on the next available flight and have their meals, overnight lodging and any related expenses covered by the airline, when airlines are responsible for delays.
Tens of millions could get compensation
Passengers experience “hardship, stress and financial costs” when they are faced with delays and cancellations, a DOT briefing says. According to the Government Accountability Office (GAO), over 15 million passengers were potentially affected by flight cancellations in the nine months to April 2022 and as many as 116 million passengers suffered delays. In both 2022 and 2023, the DOT says, over 60% of such delays were caused by the airlines themselves. If that airline behaviour continues after the proposed legislation is passed, tens of millions of passengers could be due payouts from the airlines.
Unlike many countries worldwide, the United States does not currently provide consumer protections when airlines are at fault over delays. Instead, the systems rely on “airline promises”. While the ten most powerful US airlines say they rebook and provide meals to stranded passengers at no extra cost, and nine say they will cover the cost of accommodation and related transportation expenses, all those decisions are at the airlines’ discretion, and, significantly, it is they who decide whether they are to blame for a delay or not.
Passengers shouldn’t bear the cost of disruptions
The new rules would put US passenger rights on a more even footing with citizens of those other nations. As well as compensation levels and conditions, the public are invited to weigh in on how “fault” should be decided, how notifications about delays should be received, and how extreme weather events would be dealt with.
Airline industry group Airlines for America, has slammed the new rules as “ill-conceived and rushed”, saying they “will drive up ticket prices”. But research shows that after the EU introduced similar consumer protections, the likelihood and duration of flight delays was slashed. US Transportation Secretary, Pete Buttigieg alluded to that industry improvement in an interview, saying the rule changes would motivate airlines to do more and that it’s “very reasonable to say you have some compensation for your time and some protections.”
Buttigieg was also quick to highlight how much money aviation received during the Covid-19 pandemic. “US taxpayers kept US airlines afloat,” he said. “Now that we are on the other side of the pandemic and air travel is breaking records, we must continue to advance passenger protections. This action we’re announcing is another step forward into a better era for commercial air travel—where the flying public is better protected and passengers aren’t expected to bear the cost of disruptions caused by airlines.”
