Recently, President Joe Biden said his administration is writing new rules that will require airlines to compensate passengers with cash for significant flight delays or cancellations when the carriers are responsible.
"Our top priority has been to get American air travellers a better deal," Biden said.
It is the latest in a series of moves by the Biden administration to crack down on airlines and bolster passenger consumer protections for domestic US flights and international flights involving an American destination or origin.
"Summer travel is going to put enormous pressure on the system, airlines need to accept their fundamental responsibility to better serve passengers", US Transportation Secretary Pete Buttigieg said on Monday.
New compensation rules proposed by US Department of Transportation (DOT) for airline passengers impacted by flight delays or cancellations may involve covering meals and hotels in the event that travellers are stranded.
If implemented, it would be the first measure of its kind in the US.
DOT did not specify how much cash it aims to require airlines to pay passengers for significant delays. But it asked carriers last year whether they would agree to pay at least $100 for delays of at least three hours caused by airlines.
President Biden said the delay compensation rules will be proposed by the end of the year but it could take years to finalise rules, and some carriers privately question whether the department has the legal authority to mandate compensation for delays.
A July 2021 proposal to require airlines to refund consumers fees for baggage that is delayed, or onboard service like Wi-Fi that do not work, are still not finalised, a Reuters dispatch showed.
DOT said it plans to write regulations that will require airlines to cover expenses such as meals and hotels if carriers are responsible for stranding passengers.
Most carriers voluntarily committed last August to provide hotels or meals but resisted providing cash compensation for delays.
The Biden administration has objected to family seating fees, investigated 10 carriers for failing to provide refunds, pressed Southwest Airlines to do more after a holiday meltdown led to more than 16,000 flight cancellations, and proposed other new consumer protections.
The Biden administration has sparred with US airlines over who was to blame for hundreds of thousands of flight disruptions last year.
Airlines for America, a trade association representing Delta Air Lines, United Airlines, American Airlines, and others, said US airlines "have no incentive to delay or cancel a flight and do everything in their control to ensure flights depart and arrive on time, but safety is always the top priority."
US airlines note the Federal Aviation Administration (FAA) acknowledges it does not have enough air traffic control staff and is operating 10% fewer flights than in 2019 to reduce pressure on the system.
In October last year, Reuters reported major US airlines opposed Transportation Department plans to update its dashboard to show whether carriers would voluntarily compensate passengers for lengthy delays within airlines' control.
The updated dashboard shows JetBlue Airways offers frequent flyer miles, travel credits or vouchers when cancellations or delays that are under the airline's control result in passengers waiting three hours or more, and Alaska Airlines offers travel credits or vouchers. No airline guarantees cash compensation.
There is no legal requirement for airlines to compensate US passengers for delayed or cancelled flights, but the European Union and some other countries require compensation of up to €600 ($663) for most significant delays.
The International Air Transport Association (IATA) criticised the Biden Administration decision to raise the cost of air travel by mandating airlines provide financial compensation to travellers for flight delays and cancellations, in addition to their current care offerings.
IATA’s Director General Willie Walsh noted: “Airlines work hard to get their passengers to their destinations on time and do their best to minimise the impacts of any delays. Airlines already have financial incentives to get their passengers to their destination as planned.
“Managing delays and cancellations is very costly for airlines. And passengers can take their loyalty to other carriers if they are not satisfied with service levels. The added layer of expense that this regulation will impose will not create a new incentive, but it will have to be recouped – which is likely to have an impact on ticket prices.”
Additionally, the regulation could raise unrealistic expectations among travellers that are unlikely to be met. Most situations would not be covered by this regulation as weather is responsible for the bulk of air travel delays and flight cancellations.
Air traffic controller shortages played a role in last year’s delays and are also an issue in 2023, as the Federal Aviation Administration has acknowledged with its request that airlines reduce their flight schedules to the New York metropolitan area. Runway closures and equipment failures also contribute to delays and cancellations.
Additionally, supply chain issues in the aircraft manufacturing and support sectors have resulted in aircraft delivery delays and parts shortages over which airlines have little or no control but which impact reliability.