DOT proposes rules to make airlines compensate stranded passengers

The Biden administration is proposing new regulations that would require airlines to compensate customers with amenities such as hotel stays and provide free food in cases where flights are delayed or canceled. The aim is to pressure airlines to improve their customer service, particularly for instances of preventable flight delays.

The move comes following widespread disruptions in the airline industry last summer and chaotic travel during the Christmas season. More than 45,000 flights were canceled between June 1 and Aug. 31, while Southwest Airlines canceled nearly 17,000 flights in December.

This has all spurred the Department of Transportation to recommend these new rules that would, for the first time, require airlines to pay compensation beyond just a ticket refund. An April report from the congressional Government Accountability Office blamed airlines for many of these cancellations.

“When an airline causes a flight cancellation or delay, passengers should not foot the bill,” Transportation Secretary Pete Buttigieg said in a statement. “This rule would, for the first time in U.S. history, propose to require airlines to compensate passengers and cover expenses.”

The White House and the Department of Transportation are expected to release a full list of recommendations soon, which lawmakers in Congress will then weigh in on. Senate Republicans have been resistant to stricter airline regulations in the past, indicating after the Southwest holiday season meltdown that the mass cancellations may not lead to bipartisan legislation from Congress.

“Instead of rushing to regulate prices and how many drink coupons you can get, the Biden Department of Transportation should instead let the flying public vote with their feet,” said Sen. Ted Cruz, R-Texas, who is a ranking member on the Senate Commerce, Science and Transportation Committee.

The renewed discussion over delay and cancellation compensation proposals is happening as major airlines are struggling to keep not only customers satisfied, but also their own employees content.

Unionized pilots working for American and Southwest have initiated plans for a possible strike if their contract negotiations fall through, while United Airlines pilots plan to picket over their workers’ contracts the week of May 7.

These incidents have put the airline industry under the spotlight and motivated the Department of Transportation to take corrective action, particularly ahead of a this year’s anticipated busy summer travel season.