Biden Administration Push Airlines to Compensate Passengers for Flight Delays

If you’re a passenger looking for airlines to be more generous when it comes to flight delays or cancelations, you may be in luck! The U.S. Department of Transportation (DOT) proposed a rule that would require airlines to go beyond refunds when airlines delay or cancel a flight – such as offering a meal or meal voucher, overnight accommodations, ground transportation to and from the hotel, and rebooking along with timely customer service. 

The proposed compensation rule would be only in the cases where passengers experience “controllable” delays or cancelations caused by something within the airline’s control such as a mechanical issue or staffing issues. 

President Biden and Transportation Secretary Pete Buttigieg are expected to announce a new effort at the White House today. In a statement, Buttigieg said, “When an airline causes a flight cancellation or delay, passengers should not foot the bill. This rule would, for the first time in U.S. History, propose to require airlines to compensate passengers and cover expenses such as meals, hotels, and rebooking in cases where the airline has caused a cancellation or significant delay.” 

Mandates for this type of compensation already exist in Canada and the European Union. Officials think requiring compensation could improve an airline’s on-time performance. One study found that compensation requirements in the European Union lead to a decrease in flight delays, according to the Transportation Department. 

As part of the administration’s series of steps to improve air travel and passenger protections, the DOT will also expand its Airline Customer Service Dashboard (FlightRights.gov) to show that virtually no airlines offer compensation on top of refunds or amenities. Currently, the website lists the airlines that offer cash compensation, travel credits or vouchers, award frequent flyer miles, or cover the costs for hotels and other amenities. 

By the numbers:

• 10 of the largest airlines guarantee meals and free rebooking on the same airline.
• 9 of the largest airlines guarantee hotel accommodations.
• 2 airlines guarantee travel credits or vouchers for delays or cancellations within the airlines’ control.
• 1 airline guarantees frequent flyer miles.
• 0 or no airlines guarantee cash compensation for preventable delays and cancellations.

The proposed changes stem from last year’s Southwest Airlines fiasco where thousands of flights were canceled. Federal law does not require airlines to compensate passengers for flight delays. If a flight is canceled, a passenger can choose to receive a refund. Because the proposed mandate is expected to get some pushback from airlines and it’s also a slow rollout process, travel experts believe passengers may not see any official changes at airlines for months or years.