The Biden administration is zeroing in on the airline industry once again with a new proposal that could make your travel delays a little less unbearable—financially, at least. The U.S. Department of Transportation (DOT) just announced a rule-making process to force airlines to dole out monetary compensation when passengers are left stranded due to airline issues.
The DOT wants airlines to pay passengers for significant delays or cancellations that fall under their control—think mechanical failures or IT meltdowns. The new proposed rule would require $200 to $300 payments for domestic delays of at least three hours, $375 to $525 for delays hitting the six-hour mark and $750 to $775 for delays of nine hours or more. That’s right, a nine-hour wait could turn into an accidental jackpot (though we’d still rather skip the airport floor nap).
Small airlines might get a break and pay less than the big corporate ones, and passengers notified a week or two in advance of a delay or cancellation might not qualify for compensation.
The proposals also suggest airlines should rebook you on the next available flight at no extra charge and cover meals, overnight stays and transportation if they leave you high and dry.
The new rule proposal comes about after a study showed that in 2022 and 2023, over 60% of domestic delays lasting three hours or more were due to airline-caused issues. These delays and cancellations affected a whopping 131 million passengers from mid-2021 to early 2022 alone.
Places like the U.K., E.U., Canada and Brazil already have rules to soften the blow for passengers when airlines mess up. The DOT has stepped up recently, and now requires automatic refunds for canceled flights, lost bags or missing amenities you paid extra for.
Even if these proposals sound pretty great as the notoriously hectic travel season kicks off, their future is uncertain. With a second Trump administration potentially looming, the DOT’s priorities could shift. For now, public comments are now open for the next 60 days. Find more info here and file your comments here.