On Monday, President Joe Biden will announce that the U.S. Transportation Department would establish new regulations requiring airlines to reimburse customers for severe flight delays or cancellations where carriers are at fault.
The Biden administration’s newest airline crackdown and consumer protection measure.
“When an airline cancels or delays a flight, passengers should not pay,” stated USDOT Secretary Pete Buttigieg.
USDOT proposes to make airlines pay for food and accommodations if they strand customers. In August 2022, most carriers voluntarily offered rooms or meals but not monetary compensation for delays.
The Biden administration has opposed family seating surcharges, investigated ten carriers for failing to offer refunds, encouraged Southwest Airlines (LUV.N) to do more after a Christmas meltdown caused over 16,000 flight cancellations, and suggested various consumer measures.
Starting Monday, USDOT’s website will state that no U.S. airlines have agreed to pay cash for delayed or canceled flights within their control.
The Biden administration and U.S. airlines have argued about who caused hundreds of thousands of flight delays last year.
Airlines for America, which represents Delta Air Lines (DAL.N), United Airlines (UAL.O), American Airlines (AAL.O), and others, said U.S. airlines “have no incentive to delay or cancel a flight and do everything in their control to ensure flights depart and arrive on time, but safety is always the top priority.”
U.S. airlines note the FAA concedes it lacks an air traffic control workforce and is flying 10% fewer flights than in 2019 to relieve system pressure.
Reuters reported in October that major U.S. airlines rejected USDOT plans to update its dashboard to highlight whether carriers would voluntarily reimburse customers for significant delays within airlines’ control.
USDOT said Monday that one airline guarantees frequent flyer points, and two airlines promise travel credits or vouchers for three-hour delays. No airline promises money.
Airlines are not required to reimburse U.S. customers for delayed or canceled flights, while the European Union and several other nations demand up to 600 euros ($663) for major delays.
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