New airline rules proposed by the Biden administration to protect passengers from flight cancellations and delays

New airline regulations proposed by the Biden administration require airlines to compensate passengers for significant delays and flight cancellations.

The Biden administration has announced new regulations to ensure that airlines provide compensation for flight disruptions that are within their control. This comes after months of Transportation Secretary Pete Buttigieg and the airline industry blaming each other over persistent travel issues. The proposed rules would require airlines to compensate passengers and cover expenses such as meals, hotels, and rebooking when an airline causes a significant delay or cancellation. Airlines currently only offer frequent flyer miles, travel credits, or vouchers in such situations.

FILE - A traveler looks at a flight board with delays and cancellations at Ronald Reagan Washington National Airport in Arlington, Va., Wednesday, Jan. 11, 2023. Congressional investigators said in a report Friday, April 28, 2023, that an increase in flight cancellations as travel recovered from the pandemic was due mostly to factors that airlines controlled, including cancellations for maintenance issues or lack of a crew. (AP)

"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," Transportation Secretary Pete Buttigieg said in a statement.

The Transportation Department seeks to ensure that passengers are protected against financial losses caused by airline-related issues. It plans to define “controllable cancellation and delay” in the proposed rule-making. The announcement is part of the Biden administration's push to improve customer service to airline passengers. It unveiled an online dashboard last year designed to improve customer service after widespread flight disruptions. The dashboard allows passengers to check an airline’s refund policy and compensation in the event of a flight cancellation or delay.

The Biden administration has also launched a website called FlightRights.gov, which aims to provide information about which airlines offer compensation for flight disruptions. Only one airline currently guarantees frequent flyer miles, and two guarantee travel credits or vouchers if passengers experience significant delays or cancellations caused by something within the airline's control such as a mechanical issue. None guarantee cash compensation for preventable delays and cancellations.

The proposed rules will help improve airlines' on-time performance and also help prevent unrealistic flight schedules. The Transportation Department launched an investigation into Southwest Airlines after thousands of its flights were canceled in late December. The department is investigating whether company executives scheduled an unrealistic volume of flights, which is considered an unfair and deceptive practice under federal law. The carrier has said it is cooperating with all inquiries.

The proposed rules will be the first time in U.S. history that airlines will be required to compensate passengers and cover expenses such as meals, hotels, and rebooking when an airline has caused a cancellation or significant delay. The process to implement the rules could take months if not years. It is also not clear whether compensation for cancellations would apply to weather-related cancellations and delays.

In Canada and the European Union, airlines are required to provide compensation beyond refunds for preventable flight cancellations or significant delays. A White House official pointed out that virtually no airlines offer compensation on top of refunds or amenities in the U.S. market. The Biden administration's proposed rules are aimed at improving customer service to airline passengers and ensuring that passengers are better protected against financial losses with the proposed rules.