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If you\u2019ve flown domestic in the US in the last four years, you\u2019ve likely faced at least one or two\u00a0flight delays or cancellations\u2014or worse,\u00a0complete system outages<\/a>\u2014and found yourself footing the bill, without recourse from the airlines.\u00a0<\/p>\n But there\u2019s potential relief\u00a0on the horizon: The Biden Administration is\u00a0working full steam ahead on a proposed rule that would require US airlines to provide compensation to passengers for controllable cancellations or delays of three hours or more. It may be\u00a0issued as early as January 2025 and is expected to be a game changer for US passengers and the US aviation industry.\u00a0<\/p>\n \u201cThis is not radical\u2014we are late to the game on this as a country,\u201d says Michael Negron, special assistant to the President for economic policy at the White House, speaking at an invitation-only meeting in Washington\u00a0on Sept. 10.\u00a0\u00a0<\/p>\n This proposed compensation scheme would mean US airlines would have to pay a set cash payment amount to each passenger on a disrupted flight, in addition to compensation for meals and lodging. The exact details and amounts are still being worked out.<\/p>\n A similar\u00a0scheme has been in existence in the European Union for the past 20 years, which is applicable to US airlines when they operate internationally. EU rules\u00a0require\u00a0airlines to compensate travelers between $275 to $660 for controllable cancellations and extended delays, depending on the flight distance.<\/p>\n \u201cWhen an airline cancels a flight because of mechanical or staffing issues, the passengers should receive compensation for their troubles,\u201d says Senator Edward Markey (D-Mass.), who serves on the US\u00a0Senate Committee on Commerce, Science\u00a0and Transportation.<\/p>\n Delay compensation rules\u00a0are already in place in other countries such as\u00a0Canada, India, Saudi Arabia, Turkey, Brazil and China,\u00a0and\u00a0Australia is set to pass one this year, says Tomasz Pawliszyn, Chief Executive Officer\u00a0at European consumer rights group\u00a0AirHelp<\/a>, who has been advising the US government. If airlines were to choose to pass on the cost of these potential passenger refunds to the ticket price, it would amount to less than \u20ac1\u00a0or $1 per ticket, he adds.\u00a0<\/p>\n Passenger complaints against US airlines have quadrupled in the last four years, reaching a record in 2023 with just more than 61,000 filed. \u201cThe complaints in 2023 increased by 29% even though passenger volume increased by only 11%\u2014that reflects how ticked off people are when they feel like things don\u2019t go well,\u201d says Teresa Murray, consumer watchdog director at\u00a0US Public Interest Research Group<\/a>.<\/p>\n Of those complaints, 35% were for flight issues, 20% related to refunds, and 16% related to baggage. Although, she adds, overall cancellations have improved so far this year as have on-time rates.\u00a0<\/p>\n Major US airlines have disparate rules when it comes how they handle delays. All 10 of them will rebook you on the same airline when your flight is disrupted or canceled and provide meals. Nine out of 10 will provide hotels and ground transportation, while just six will rebook you on another airline, and just three in 10 will provide a voucher. Currently none pay cash for any kind of cancellation or delay.\u00a0<\/p>\n The Biden Administration\u2019s ultimate goal is to incentivize the airlines to provide better service. In Europe, flights have a higher on-time rate, which Negron says indicates there may be a strong correlation with the fact that the European airlines are required to compensate travelers. Last year just 1% to 2% of all travelers were compensated due to disruptions, AirHelp\u00a0data confirms.\u00a0<\/p>\n \u201cWhere there\u2019s a clear standard, that is good for the industry and that is good for consumers because everybody understands what\u2019s required,\u201d Negron says. \u201cThat information can lead to improved services.\u201d<\/p>\n This latest\u00a0discussion on air travel delay compensation comes on the heels of a slew of regulations under the Biden Administration that have aimed to protect travelers and hold US airlines more accountable. There\u2019s the clarification of travelers\u2019 rights on\u00a0FlightRights.gov<\/a>, a proposed rule to\u00a0improve air access for passengers with disabilities<\/a>, the recent rule requiring airlines to provide automatic and prompt refund to passengers in the original form of payment, affirmed in the FAA Reauthorization Act, and the proposed rulemaking to impose a ban on family seating fees.\u00a0<\/p>\n \u201cThis is all part of trying to provide passengers with more assurances that, you will be OK,\u201d says Negron, who adds they\u2019re working as quickly as they can to iron out specifics.\u00a0\u201cWe can\u2019t make up for the fact that you had to spend nine hours away from your family stuck in an airport or hotel\u2014but we can make sure the airlines are held accountable when it\u2019s something they could have prevented.\u201d<\/p>\n<\/div>\n\n