DOT Proposes Cash Compensation for Flight Cancellations and Delays
The U.S. Department of Transportation (DOT) is considering new rules that could transform the way airlines handle significant flight delays and cancellations. If implemented, the regulations would require airlines to compensate passengers with cash payments ranging from $200 to $775, depending on the length of the delay.
Why the New Rules Are Being Proposed
Transportation Secretary Pete Buttigieg emphasized the importance of protecting passengers in light of the government’s support for airlines during the pandemic.
“Americans know the importance of a robust airline industry, which is why U.S. taxpayers helped keep airlines afloat during COVID,” Buttigieg said. “Now that air travel is breaking records, we must advance passenger protections to ensure passengers aren’t left bearing the cost of airline disruptions.”
What the Proposed Rule Includes
Under the proposed rules, airlines would be required to compensate passengers in cases where they are at fault for a delay or cancellation, such as issues caused by mechanical problems, staffing shortages, or IT outages.
Compensation Breakdown
- $200–$300: For domestic delays of 3 to 6 hours.
- $375–$525: For delays lasting 6 to 9 hours.
- $750–$775: For delays of 9 hours or more.
Compensation would apply only when the airline is fully or partially responsible for the disruption.
Additional Passenger Protections
The proposal includes several other provisions to help stranded passengers:
- Rebooking on Other Airlines: Airlines would be required to rebook passengers on the next available flight, including those operated by competing carriers, at no additional cost. This applies to domestic delays over 3 hours and international delays over 6 hours.
- Covering Extra Costs: Airlines would need to pay for food, lodging, and ground transportation if passengers face overnight delays due to cancellations or long delays.
Comparing to European Standards
This kind of passenger compensation is already mandated in Europe, but U.S. airlines argue it may do more harm than good.
Airlines for America (A4A), a trade group representing most U.S. carriers, criticized the proposal, saying it could increase ticket prices and disrupt airline operations.
“Airlines’ entire business model is built on satisfied, repeat customers. This government-mandated compensation would needlessly drive up costs and negatively impact operations,” A4A said in a statement.
Seeking Public Input
The DOT is inviting public feedback on the proposed rules for the next 60 days. If approved, the regulations could bring the U.S. airline industry closer to the standards seen in Europe, ensuring passengers are better protected when flights don’t go as planned.
What This Means for Travelers
If these rules are implemented, passengers could gain significant new rights, including monetary compensation for lengthy delays, expanded rebooking options, and coverage for unexpected expenses. While airlines argue it could lead to higher fares, many travelers see this as a necessary step toward improving accountability in the industry.
As the debate unfolds, travelers are encouraged to share their opinions with the DOT, shaping the future of air travel in the United States.
