Topline
Airlines could be forced to pay passengers up to $775 for extended delays on domestic flights, allow them to rebook at no additional cost and cover any meals, lodging or transportation-related expenses for passengers “stranded” due to delays that could reasonably be blamed on the airline, according to a new rule proposed by the Department of Transportation Thursday.
An airplane passenger waiting for her flight sleeps in the terminal gate area at Denver … [+]
Key Facts
The DOT Thursday proposed new rules that would, for the first time, force U.S. airlines to provide cash compensation to passengers for airline-caused disruptions like mechanical issues, maintenance or crew problems or an IT airline system breakdown.
If approved, the rule would force airlines to pay passengers between $200 and $300 for domestic flights delayed between three and six hours, $375 to $525 for delays between six and nine hours and $750 to $775 for delays of nine hours or more.
DOT is also considering how to structure the tiered payment structure—like if small airlines should pay less than large airlines, for example—and whether or not the companies should have to pay if a passenger is notified a week or two in advance of a cancellation or significant delay.
Most airlines already allow passengers to rebook on the same airline at no additional cost if a flight is canceled, but the new DOT rules could make airlines extend that policy to any passenger whose departure is delayed three hours or more domestically or six hours or more internationally, or if a delay results in a missed connection.
The proposal also suggests making airlines cover the cost of meals, overnight lodging and related transportation expenses to passengers who are stranded overnight—and to require a minimum reimbursement for each service without the need to submit receipts.
The DOT’s Thursday announcement was a notice of proposed rule making, and the agency must accept public comment for the next 60 days before issuing a final decision.
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Big Number
116 million. That’s how many passengers were impacted by flight delays from July 2021 to April 2022, according to the Government Accountability Office.
Surprising Fact
More than 60% of three-hour-or-longer domestic flight delays were airline-caused in both 2022 and 2023, according to data from U.S. airlines submitted to DOT.
Contra
Airlines For America, a trade association that represents some of the nation’s biggest airlines, told NBC News the new rules would “drive up ticket prices, make air travel less accessible for price-sensitive travelers and negatively impact carrier operations.”
Key Background
Flight delays in the United States reached a decade high in 2023 as cancelations dipped to their lowest point since 2016. More than 22% of all flights experienced some sort of delay last year, almost 2% more than in 2022 and the highest percentage since 2014, according to data from the Bureau of Transportation Statistics. According to the DOT’s air travel consumer data for August of 2024, the most recent available, Delta airlines was the most on-time major airline in the U.S. with less than 80% of flights arriving at their projected time. JetBlue was the most disrupted airline, with only 60% of flights arriving on time. About 75% of flights across major carriers arrived on time between January and August of this year. San Francisco International had the highest delay percentage of any airport in the first half of 2024—37.18% of flights were delayed—and Buffalo Niagara International had the highest cancellation rate at 2.74%.
