Biden administration proposing rule changes to compensate passengers for flight delays

WASHINGTON — The Biden administration wants to require airlines offer compensation beyond refunds for "controllable" flight cancellations or significant delays.

President Joe Biden on Monday said the Transportation Department will propose later this year new regulations detailing how and when airlines must provide cash or other compensation and cover expenses for meals, lodging, and rebooking when carriers are responsible for stranding passengers.

“If your airline is very delayed or cancelled, and the airline could’ve prevented that, you deserve more than just getting the price of your ticket. You deserve to be fully compensated," Biden said. "Your time matters. The impact on your life matters."

In the meantime, consumers will be able to check the government site FlightRights.gov to see what airlines currently offer — which the administration says is not enough.

Airlines for America, the industry trade group for the leading U.S. airlines, pushed back saying airlines have no incentive to delay or cancel a flight. The group said most flight cancellations this year were caused by severe weather or air traffic control outages.

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Airlines, the organization said, have taken responsibility for "challenges within their control."

The ten largest airlines guarantee meals and free rebooking on the same airline and nine guarantee hotel accommodations.

The ten largest airlines guarantee meals and free rebooking on the same airline and nine guarantee hotel accommodations.

Virtually no airlines offer compensation on top of refunds or amenities, according to the White House.

Only one airline guarantees frequent flyer miles, and two guarantee travel credits or vouchers if passengers experience significant delays or cancellations that are caused by something within the airline's control such as a mechanical issue, the administration said.

None guarantee cash compensation for preventable delays and cancellations. Biden pointed out that Canada and the European Union have policies mandating this type of additional compensation.

The announcement is the latest in a series of steps administration has taken to improve air travel and passenger protections.

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Previous actions

• Ticket price transparency: Last year, the administration proposed a new rule to keep consumers from being surprised by hidden fees. Airlines and third-party booking sites would have to disclose upfront — the first time an airfare is displayed — any fees charged to sit with a child, for changing or cancelling a flight, and for checked or carry-on baggage.
• Refunds: Other pending rules changes would require refunds for services, such as WiFI, that customers paid for but were not provided, and would require airlines tell passengers they have a right to a refund when a flight is canceled or significantly changed.
• Customer service dashboard: An interactive dashboard launched last year shows side-by-side what each airline offers travelers when flights are canceled or significantly delayed for reasons within their control, such as maintenance issues, staffing shortages, or delays in cleaning, fueling or baggage handling.
• Family seating help: As of March, the dashboard can help families figure out which airlines will let them sit together for free.

Why it matters

The Biden administration argues stranded passengers must be better protected from financial losses. Officials also think requiring compensation could improve airline’s on-time performance. One study found that compensation requirements in the European Union led to decreased flight delays, according to the Transportation Department.

Part of the rule-making process will include defining a "controllable cancellation and delay" that would trigger compensation.

The proposed regulation also aims to set requirements for "timely customer service" during and after periods of widespread flight irregularities.

Airlines and consumer protection groups can weigh in during the public comment process.

Flight cancellations

• Flight cancellations as travel recovered from the pandemic were due mostly to factors that airlines controlled, including maintenance issues or lack of a crew, according to a Government Accountability Office report earlier this month.
• Cancellations grew to about 2.7% of all flights last year, according to the Bureau of Transportation Statistics. Aside from 2020, the overall cancellation rate has been below 2% every year since 2015.
• As air travel began to surpass pre-pandemic levels this spring, travel organizations warned the Federal Aviation Administration that more air-traffic controllers were needed to avoid delays and cancellations.
• The U.S. Travel Association, a trade group advocating for the travel industry, recommended accelerating the modernization of air-traffic control technology and airports. The group noted that there are 1,200 fewer certified air-traffic controllers than a decade ago.
• "Periods of high demand—like spring break and holiday weekends—are a stress test that reveal the inadequacies of our current air travel system," U.S. Travel Association CEO Geoff Freeman said in a statement in March. "Demand may be high now, but countless frustrating air travel experiences may cause passengers to choose other modes of transportation or simply stay home in the future."

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Contributing: Bart Jansen, USA TODAY