US airlines may soon face cash penalties for delayed flights

If you’ve flown domestic in the US in the last four years, you’ve likely faced at least one or two flight delays or cancellations—or worse, complete system outages—and found yourself footing the bill, without recourse from the airlines. But there’s potential relief on the horizon: The Biden Administration is working full steam ahead on a proposed rule that would require US airlines to provide compensation to passengers for controllable cancellations or delays of three hours or more. It may be issued as early as January 2025 and is expected to be a game changer for US passengers and the US aviation industry. “This is not radical—we are late to the game on this as a country,” says Michael Negron, special assistant to the President for economic policy at the White House, speaking at an invitation-only meeting in Washington on Sept. 10. This proposed compensation scheme would mean US airlines would have to pay a set cash payment amount to each passenger on a disrupted flight, in addition to compensation for meals and lodging. The exact details and amounts are still being worked out. A similar scheme has been in existence in the European Union for the past 20 years, which is applicable to US airlines when they operate internationally. EU rules require airlines to compensate travelers between $275 to $660 for controllable cancellations and extended delays, depending on the flight distance. “When an airline cancels a flight because of mechanical or staffing issues, the passengers should receive compensation for their troubles,” says Senator Edward Markey (D-Mass.), who serves on the US Senate Committee on Commerce, Science and Transportation.<br/>