Flight Delayed? U.S. Airlines May Soon Owe You Cash
Air travel in the U.S. has become frustrating for many passengers due to frequent flight delays, cancellations, and even system outages. Often, travelers find themselves paying out-of-pocket for disruptions caused by the airlines, with no compensation. However, there is potential for change on the horizon.
The Biden Administration is pushing for a new rule that would require U.S. airlines to compensate passengers for controllable delays of three hours or more or cancellations. This new rule could be introduced as early as January 2025, bringing significant relief to affected passengers.
Michael Negron, a special assistant to the President for economic policy, noted that the U.S. is "late to the game" on such measures compared to other countries. The proposal would mandate airlines to offer cash payments to passengers affected by these disruptions and cover meals and lodging.
While exact amounts are still being discussed, this system mirrors policies in the European Union. Airlines compensate passengers between $275 and $660 for delays or cancellations based on flight distance.
Countries like Canada, India, Brazil, and others have already introduced similar compensation rules. According to Tomasz Pawliszyn, CEO of AirHelp, these measures should not significantly affect ticket prices, estimating an increase of less than $1 per ticket if airlines pass on the costs to consumers.
In recent years, U.S. passenger complaints about airlines have skyrocketed, quadrupling since 2019 and setting a record in 2023 with over 61,000 complaints. Many of these complaints were related to flight issues, refunds, and baggage problems. While some improvements in cancellation rates and on-time performance have been noted, many believe this proposal will push airlines to enhance their services further.
The Biden Administration's ultimate goal is to encourage airlines to improve performance and accountability. Negron emphasized that "this is all part of trying to provide passengers with more assurances that you will be OK. " While the specifics are still being ironed out, the administration aims to ensure that airlines are held accountable when disruptions could have been prevented.
This proposal adds to other recent efforts to protect U.S. travelers, including measures around refund processes and seating fees for families. The administration is working quickly to finalize the specifics of this new compensation rule.
Also Read: Federal Probe Targets U.S. Airlines' Frequent-Flyer Program Policies
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