Rulemaking builds on Biden-Harris Administration’s enforceable flightrights.gov commitments and automatic refund rule, and would give passengers greater protections during disrupted travel
WASHINGTON – The U.S. Department of Transportation (DOT) today launched a rulemaking to protect passengers stranded by airlines canceling or significantly changing their flights. The Advance Notice of Proposed Rulemaking (ANPRM) seeks public comment on requiring airlines to pay passengers cash compensation, rebook them for free on the next available flight, and cover meals, overnight lodging, and related transportation expenses when a disruption is airline-caused, such as a mechanical issue or an IT airline system breakdown.
“Americans know the importance of a robust airline industry, which is why this country-and U.S. taxpayers – kept U.S. airlines afloat when the COVID pandemic threatened their very existence,” said U.S. Transportation Secretary Pete Buttigieg. “Now that we are on the other side of the pandemic and air travel is breaking records, we must continue to advance passenger protections. This action we’re announcing is another step forward into a better era for commercial air travel-where the flying public is better protected and passengers aren’t expected to bear the cost of disruptions caused by airlines.”
Cancellations and lengthy flight delays can pose significant hardship, stress, and financial cost to travelers. The Government Accountability Office (GAO) found that flight cancellations from July 2021 through April 2022 potentially affected over 15 million passengers and flight delays potentially affected over 116 million passengers. According to data from U.S. airlines submitted to DOT, in both 2022 and 2023, over 60% of three-hour or longer domestic flight delays were airline-caused.
Canada, Brazil, the European Union, the United Kingdom, and other countries have adopted consumer protections that compensate passengers and provide services when an airline causes a significant delay. One study found that the European Union’s compensation and service requirements reduced the likelihood and duration of flight delays.
U.S. airlines received $54 billion in taxpayer bailouts during the COVID-19 pandemic, helping the industry recover and enjoy record travel demand. While no U.S. airline provides cash compensation to passengers for airline-caused disruptions, following DOT actions, several airlines must provide at least $50 in credits or vouchers. Thanks to DOT pressure on airlines, the ten largest U.S. airlines have committed to rebook stranded passengers at no additional cost and cover meals during an airline-caused disruption, and nine have committed to providing lodging and related transportation expenses. However, airlines can change course on their customer service commitments at their discretion, and it is often up to the airlines to determine when they are responsible for a flight delay or cancellation.
Passengers currently face many challenges in holding airlines to their promises because there is no legal obligation for airlines to notify passengers when they are entitled to services promised in the customer service plan, and their policies are generally vague on the details of delivery. Passengers must also typically request these services at the airport in person, and frontline staff may not know if a flight disruption is airline-caused or may not have enough vouchers to provide upfront services to everyone. Airlines generally do not clearly disclose when, what, and how much they will reimburse passengers who pay out of pocket.
The Department’s rulemaking is aimed at addressing these gaps by establishing baseline standards on what airlines are obligated to deliver to stranded passengers during disruptions. The Department is considering the following requirements for airlines when there is a cancellation or lengthy delay due, in whole or in part, to any circumstance within the control of the airline:
- Pay at least $200 in cash compensation: DOT is considering requiring airlines to automatically pay cash compensation to passengers whose trip disruption is caused by an airline. DOT is considering a tiered approach where compensation could range from $200-$300 for domestic delays of at least three hours but less than six, $375-$525 for delays of at least six hours but less than nine, and $750-$775 for delays of nine hours or more. DOT is also considering whether small airlines should pay less than large airlines and whether or not compensation should be required when a passenger is notified a week or two in advance of the cancellation or significant delay.
- Rebook at no additional cost on the next available flight: The Department is considering requiring airlines to offer free rebooking when the passenger’s flight is cancelled, their departure is delayed three hours or more domestically or six hours or more internationally, or if a delay results in a missed connection. DOT is considering requiring rebooking on the next available flight operated by the airline or its branded codeshare partners, and if flights on those airlines are not available within 24 hours, then any carrier that the airline has a commercial agreement to transport the airline’s passengers.
- Cover meals, overnight lodging, and related transportation expenses: DOT is considering requiring airlines to provide meals, overnight lodging, and transportation to and from lodging for stranded passengers and establishing standards regarding what must be covered as part of each service, including how often it must be provided during lengthy disruptions. DOT is considering requiring airlines to automatically pay a minimum reimbursement for each service an affected passenger is entitled to receive when airlines do not provide these services upfront, and passengers do not submit receipts for costs up to a maximum reimbursement threshold per service.
The rulemaking also solicits comment on when to consider a cancellation or delay within an airline’s control; whether airlines should provide free rebooking and certain services, like meals, during significant delays or cancellations regardless of cause, like during extreme weather events; how to incentivize large airlines to provide rebooking reciprocity to small airlines or disincentivize large airline practices that prevent rebooking reciprocity; what notifications should be required to ensure that passengers receive the correct information from the airline in a timely manner; and what customer service standards might be necessary to minimize wait times for passengers affected by a cancellation or delay.
The ANPRM on Airline Passenger Rights is available HERE and provides the public with 60 days to offer comments.
DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration
Under Secretary Buttigieg, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and secured returns of more money to passengers in refunds and reimbursements than ever before in the Department’s history.
- Automatic Refund Rule: DOT issued a final rule that requires airlines to provide automatic cash refunds to passengers when owed. The rule makes clear that airline passengers are entitled to a refund when their flight is canceled or significantly changed and they no longer wish to take that flight or be rebooked, when their checked baggage is significantly delayed, or when extra services they paid for – like Wi-Fi – are not provided. The rule also requires refunds to be automatic, prompt, in the original form of payment, and in the full amount paid. Key automatic refund requirements for airlines went into effect on May 16, 2024, when President Biden signed the FAA Reauthorization Act of 2024 into law, and the remaining airline refund protections under DOT’s rule are effective as of October 28, 2024.
- Passengers can better understand their rights under this new rule by reading this explainer.
- Surprise Airline Junk Fee Rule: DOT issued a final rule to protect consumers from costly surprise airline junk fees. The rule fosters a more competitive airline market by requiring airlines to disclose critical extra fees upfront – like change fees and baggage fees – to ensure consumers can better understand the true cost of their travel. The rule also bans “bait-and-switch” advertising tactics and requires airlines to clearly tell passengers upfront that a seat is included with the cost of their ticket and they do not need to pay extra for one. Airlines have challenged this rule in court, and the court has put a temporary hold on implementation of the rule. The Department will continue to defend this rule and notes that nothing in the Court’s decision prevents airlines from voluntarily complying with this common-sense rule. If the rule were to go into effect, it would save consumers over half a billion dollars every year.
- Billions of Dollars Returned to Passengers: Since President Biden took office, DOT has helped oversee the return of almost $4 billion in refunds and reimbursements owed to airline passengers – including more than $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022 – through enforcement actions.
- Stronger Airline Oversight: Under Secretary Buttigieg, DOT has issued nearly $225 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued $70 million in penalties against airlines for consumer protection violations.
- Expanded Enforcement Capacity: DOT launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public.
- Lowest Flight Cancellations in 10+ Years: In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2 percent – the lowest rate of flight cancellations in over 10 years despite a record amount of air travel.
- Inquiries on Privacy Practices and Rewards Programs: DOT is undertaking its first ever industry-wide review of airline privacy practices and its first inquiry into airline rewards programs.
In addition to finalizing the rules to require automatic refunds and protect consumers from surprise fees, DOT has proposed:
- Banning Family Seating Junk Fees: DOT has proposed to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, as the Department is working on its family seating junk fee ban proposal.
- Protecting Passengers Who Use Wheelchairs: DOT has proposed to expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity. The Department is actively working on a final rule now.