Biden plans to bolster US airline consumer protections By Reuters

Written by David Shepherdson and Nandita Bose

WASHINGTON (Reuters) – President Joe Biden will announce on Monday that the U.S. Department of Transportation aims to write new rules requiring airlines to compensate passengers for significant flight delays or cancellations when the carriers are responsible.

This is the latest in a series of moves by the Biden administration to crack down on airlines and strengthen consumer protections for passengers.

“When an airline causes a flight cancellation or delay, passengers should not pay the bill,” US Secretary of Transportation (USDOT) Pete Buttigieg said in a statement.

USDOT said it plans to write regulations requiring airlines to cover expenses such as meals and hotels if carriers are responsible for stranding passengers. Most carriers committed voluntarily in August 2022 to provide hotels or meals but resisted providing monetary compensation for the delay.

The Biden administration has challenged family seating fees, investigated 10 airlines for failing to provide refunds, and pressured Southwest Airlines (NYSE:) to do more after a holiday meltdown that canceled more than 16,000 flights and proposed other new protections for consumers.

The USDOT will clarify as of Monday on a government website that no US airlines have agreed to provide monetary compensation for delayed or canceled flights under the control of the carriers.

The Biden administration has sparred with US airlines over who is responsible for hundreds of thousands of flight disruptions last year.

American Airlines, a trade association representing Delta Air Lines (NYSE:), United Airlines, American Airlines (NASDAQ:), and others, said that US airlines “have no incentive to delay or cancel a flight and do everything they can to ensure flights depart and arrive.” On time, but safety is always the top priority.”

US airlines note that the FAA acknowledges that it does not have enough air traffic control personnel and is operating 10% fewer flights than in 2019 to reduce pressure on the system.

In October, Reuters first reported that major US airlines opposed USDOT’s plans to update its dashboard to show whether carriers would voluntarily compensate passengers for long delays that are within the airlines’ control.

USDOT said Monday that the updated dashboard will show that one airline guarantees frequent flyer miles and two airlines guarantee travel credits or coupons when cancellations or delays result in passengers waiting three hours. No airline guarantees monetary compensation.

There is no legal requirement for airlines to compensate US passengers for delayed or canceled flights, but the European Union and some other countries are asking for compensation of up to 600 euros ($663) for the most significant delays.