The Department of Transportation Wants to Require Airlines to Compensate Stranded Fliers

What happened

On Monday, May 8, 2023, the Department of Transportation (DOT) announced plans to create new rules requiring airlines to compensate passengers and cover some expenses for controllable flight delays and cancellations. The DOT wants to ensure consumers are better protected from financial losses due to delays and cancellations.

The DOT hopes to address the following:

• Definition of a controllable cancellation or delay;
• Compensation for when there is a controllable airline cancellation or significant delay;
• A meal or meal voucher, overnight accommodations, ground transportation to and from the hotel, rebooking for controllable delays or cancellations, and
• Timely customer service during and after periods of widespread flight irregularities.

So what

At this time, no federal rules require airlines to provide passengers with money or compensation for flight delays. There are also no rules requiring airlines to compensate passengers for costs beyond reimbursement for the airline ticket when a cancellation occurs. New rules could help fliers save money on unplanned travel expenses that result from such situations.

In a recent news release, U.S. Transportation Secretary Pete Buttigieg had the following to say about the proposed rulemaking: "When an airline causes a flight cancellation or delay, passengers should not foot the bill."

Buttigieg continued, "This rule would, for the first time in U.S. history, propose to require airlines to compensate passengers and cover expenses such as meals, hotels, and rebooking in cases where the airline has caused a cancellation or significant delay."

Now what

While consumers aren't currently protected by law, new rules could protect travelers and help them keep more money in their checking accounts when their travel plans go awry due to airline disruptions. In the meantime, travelers may want to use travel credit cards to book air travel.

Many of the best travel credit cards include benefits such as flight delay and flight cancellation protections that can make an unexpected travel delay or cancellation less stressful and less costly. Plus, travelers can earn rewards on their spending by using these cards.

Before booking airline tickets, consumers are encouraged to review the DOT's Airline Cancellation and Delay Dashboard to see what each major airline is committed to doing during a controllable delay or cancellation.

Unfortunately, none of the major U.S. airlines offer cash compensation for delays or cancellations that result in passengers waiting three hours or more from the scheduled departure time. But this could change in the future.