Airline Passengers Would Be Paid For Major Delays Under Proposed Rule

The Biden administration is considering new rules that would require airlines to compensate passengers for significant flight delays or cancellations caused by the airline. The U.S. Department of Transportation (DOT) has issued an Advance Notice of Proposed Rulemaking (ANPRM) to gather public feedback on the proposal. If implemented, these rules would mandate airlines to pay passengers cash compensation for disruptions lasting three hours or more, rebook them for free on the next available flight, and cover expenses for meals, lodging, and transportation during airline-caused disruptions.

"Americans know the importance of a robust airline industry, which is why this country—and U.S. taxpayers — kept U.S. airlines afloat when the COVID pandemic threatened their very existence," said U.S. Transportation Secretary Pete Buttigieg. "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."

The proposed rules aim to align U.S. passenger rights more closely with those in the European Union, where similar compensation measures have reduced the likelihood and duration of flight delays.

The DOT's proposal suggests compensation ranging from $200 to $775, depending on the length of the delay. However, the rules would only apply to disruptions deemed within the airline's control, such as mechanical issues or IT failures. The public has 60 days to comment on the proposal, after which the incoming administration of President-elect Donald Trump will decide whether to proceed with the rulemaking process.

While some airlines have already committed to providing certain services during controllable disruptions, the new measures would formalize these commitments into enforceable DOT rules. However, the airline industry has expressed concerns that mandatory compensation could increase ticket prices and impact operations. The DOT's rulemaking process follows recent stricter refund requirements aimed at improving passenger rights.