Non-flight-related expenses can account for 60% to 80% of a trip’s total cost. (Credit: kasto/Adobe Stock)
The Department of Transportation has dropped a proposed rule that would have given cash to airline passengers if their flights were disrupted.
The rule would have required airlines to pay passengers for cancellations or delays that were within the carrier’s control. Passengers would have received up to $300 for domestic delays of three to six hours and up to $775 for flight delays of nine hours or more.
The proposed rule, which never went into effect, was introduced under President Biden and his Transportation Secretary Pete Buttigieg.
In a statement to CBS News, a Department of Transportation spokesperson said, “We will faithfully implement all aviation consumer protection requirements mandated by Congress […] Some of the rules proposed or adopted by the previous administration, however, went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements.”
Airlines guarantee rebooking plus meals and lodging vouchers for customers impacted by flight delays and cancellations, and they must refund tickets for passengers if a flight is cancelled or substantially delayed and the passenger chooses not to travel. But none currently offer cash compensation.
When flights are delayed or canceled, passengers can be forced to delay or cancel hotel bookings, tours and ground transportation. According to InsureMyTrip, non-flight-related expenses can account for 60% to 80% of a trip’s total cost.
"With the rollback of these consumer protections, travelers can no longer depend on the government to guarantee compensation for delays," said Suzanne Morrow, InsureMyTrip CEO, in a statement. "That makes travel insurance the most reliable way to protect your investment — from flights to hotels, emergency medical coverage, and many things in between."
Airlines for America, a trade group for U.S. airline carriers, said the proposal would have driven up ticket prices and would “make air travel less accessible for price-sensitive travelers and negatively impact carrier operations.”
The Department of Transportation is also reviewing which types of flight cancellations should trigger refunds for customers, and it is considering repealing a rule that requires airlines to disclose extra fees to consumers up front.
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