U.S. DoT plans new regulations to compensate airline passengers for delays

President Joe Biden is expected to announce new rules on May 8 aimed at compelling airlines to compensate passengers for significant flight delays or cancellations caused by carriers. The move is part of a series of efforts by the Biden administration to crack down on airlines and enhance consumer protections, cnbc.com reported.

The U.S. Transportation Department plans to write regulations that will require airlines to cover expenses such as meals and hotels when they are responsible for stranding passengers. Although most carriers have voluntarily committed to providing meals or hotels, they have resisted offering cash compensation for delays.

The Biden administration has previously opposed family seating fees, investigated 10 carriers for failing to provide refunds, urged Southwest Airlines to improve after a holiday meltdown caused over 16,000 flight cancellations, and proposed additional consumer protections.

Starting Monday May 8, the U.S. Transportation Department will clarify on a government website that no U.S. airlines have agreed to provide cash compensation for delayed or canceled flights under carriers’ control.

Last year, the Biden administration and U.S. airlines disagreed over who was accountable for hundreds of thousands of flight disruptions. Airlines for America, a trade association representing Delta Air Lines, United Airlines, American Airlines, and others, stated that U.S. airlines have no reason to delay or cancel flights and make every effort to ensure timely departures and arrivals, with safety as their top priority.

U.S. airlines argue that the Federal Aviation Administration (FAA) does not have sufficient air traffic control staff and is operating 10% fewer flights than in 2019 to alleviate pressure on the system.

In October, major U.S. airlines opposed U.S. Transportation Department plans to upgrade its dashboard to display whether carriers would voluntarily compensate passengers for long delays within their control.

The updated dashboard, according to the U.S. Transportation Department, will indicate that one airline guarantees frequent flyer miles, and two airlines guarantee travel credits or vouchers when cancellations or delays cause passengers to wait for three hours. No airline guarantees cash compensation.

Although there is no legal requirement for airlines to compensate U.S. passengers for delayed or canceled flights, the European Union and some other countries demand compensation of up to 600 euros ($663) for significant delays.