The US Department of Transportation (DOT) under Secretary Pete Buttigieg already created new regulations to ensure passengers get refunds for cancelled flights, announcing in October that anyone whose flight gets cancelled or significantly delayed must get an automatic refund if they decide not to travel because of the change. But a new additional proposal could mean that passengers are entitled to monetary compensation for flight disruptions, not just refunds. But if you feel strongly that that’s the right thing to do, you’ll have to weigh in soon.
Photo: CandyRetriever/Shutterstock
New US Rules Could Compensate Travelers in Cash for Airline Delays
On December 5, 2024, the DOT announced that the public has 60 days to weigh in on a new proposal that would require airlines to compensate passengers with direct cash payments for significant delays. Airlines would also need to provide services like free immediate rebooking, compensate for lost luggage, and cover the costs of meals, transportation, lodging, and other expenses incurred due to the delay or cancellation. Right now, most airlines provide lodging and meal vouchers if the delay is caused by something in the airline’s control — which means you may be stuck sleeping on the airline floor if your delay is due to weather. But those comps are voluntary by the airlines, and not uniformly enforced.
Secretary Pete Buttigieg emphasized that such measures would shift the economic incentives and motivate airlines to minimize delays and cancellations when possible. Currently, there is no federal requirement for compensating customers for delays. The rule would bring the level of consumer protection for US flyers more in line with regions in places like the EU, where similar compensations are standard practice.
View this post on Instagram
Under the proposed framework, compensation would be tiered based on the length of the delay: $200 to $300 for delays of less than six hours, $375 to $525 for delays of six to nine hours, and $750 to $775 for delays of nine hours or more. The proposed rule would also require airlines to cover expenses incurred during delays, like meals and hotels. Finally, it would mandate that airlines must book passengers on the soonest possible replacement flight, potentially even on competing carriers, if necessary. (But remember that you may be entitled to much more than that if your’e involuntarily bumped from a flight.)
Airline industry trade group Airlines for America, whose members include American Airlines, Delta Air Lines, and United Airlines, has fought against the proposal, arguing that it would lead to increased operational costs, which would mean raising ticket costs for consumers. However, regions like the European Union, the United Kingdom, and Canada have similar requirements, and the rules are credited with improving service, reliability, and accountability within the aviation industry.
Anyone who wants to weigh in on the issue can do so, though the 60-day comment period will end during the Trump administration. That means the DOT will be led by a Republican secretary chosen by the incoming president. Traditionally, republicans are less likely to support any type of restrictions on capitalism and the free market, so it’s possible nothing will come of the current effort.
The full proposal is available online, and anyone with thoughts on the proposal is advised to weigh in at Regulation.gov, using docket number DOT-OST-2024-0062. Comments are due by February 4, 2025. The news also noted that the DOT is trying to finalize two additional regulations before the new administration takes office. Those regulations would both require that airlines allow families to sit together without charging additional seat assignment fees, and create new rules to make air travel easier for travelers in wheelchairs. 