On Monday, the Biden administration announced that it is developing new rules to ensure that airlines compensate passengers for significant flight delays or
cancellations caused by the carriers. The U.S. Department of Transportation did not specify the amount of compensation that airlines would be required to pay, but it had asked airlines last year if they would agree to pay at least $100 for delays of at least three hours caused by the airlines. The new regulations would apply to domestic U.S. flights and international flights involving an American origin or destination.
Transportation Secretary Pete Buttigieg said that passengers should not have to bear the cost when airlines cause flight cancellations or delays. The Department of Transportation plans to draft regulations requiring airlines to cover expenses such as meals and hotels if they are responsible for leaving passengers stranded. Although most airlines agreed last year to provide hotels or meals in such situations, they resisted providing cash compensation for delays.
The Biden administration has been taking steps to enhance consumer protections for airline passengers, including investigating carriers that failed to provide refunds, objecting to family seating fees, and proposing other new consumer protections. However, some airlines have privately questioned the Department of Transportation's legal authority to mandate compensation for delays.
It may take several years to finalize the new rules, and a July 2021 proposal to require airlines to refund consumers fees for delayed baggage and onboard services such as Wi-Fi is still not finalized. The updated dashboard shows that no U.S. airline guarantees cash compensation, although JetBlue Airways and Alaska Airlines offer travel credits or vouchers. In contrast, the European Union and some other countries require airlines to compensate passengers up to 600 euros ($663) for significant delays. Photo by Dylan Ashe from San Jose, USA, Wikimedia commons.