Travel delays could soon come with a consolation prize

Yesterday, the Biden administration proposed a new rule that would require airlines to provide compensation beyond refunds to US passengers whose flight plans are altered due to causes within the airlines’ control.

✈️🤑 Let’s break it down: The first-of-its-kind rule would mandate that airlines refund all US travelers’ expenses – including meals, taxis/rideshares, hotels, and rebooking – in cases where the airline has caused a cancellation or significant delay.

This definition covers all flights scrubbed due to mechanical issues with the plane or lack of enough available crew, which collectively accounted for half of all cancellations last year (per a recent federal analysis). Though it excludes any delays from weather, heavy traffic volume, or air traffic control issues.

• The proposed rule represents a departure from current airline industry laws, where US passengers are only entitled to a refund of their unused ticket plus any additional fees – though many airlines already reimburse extra expenses for significant flight disruptions.

👀 Looking ahead… The process to implement the Biden admin’s new rule will likely take months or years. Airlines are expected to challenge the proposed changes, having argued in the past that such laws would make travel more costly for all US passengers, since carriers would be forced to hike ticket prices.