BUSINESS + ECONOMY

Biden administration will propose rule requiring airlines to compensate passengers for canceled or delayed flights

May 9, 2023, 9:00 AM | Updated: 9:11 am

FILE - The logo for Goldman Sachs appears above a trading post on the floor of the New York Stock E...

FILE - The logo for Goldman Sachs appears above a trading post on the floor of the New York Stock Exchange on July 13, 2021. Goldman Sachs has agreed Monday, May 8, 2023, to pay $215 million to settle a years-long class action lawsuit that claimed the bank discriminated against women when it came to pay, performance evaluations and promotions. (AP Photo/Richard Drew, File)
Credit: ASSOCIATED PRESS

(AP Photo/Richard Drew, File)

(CNN) — President Joe Biden and Transportation Secretary Pete Buttigieg on Monday will announce a proposal for a new rule that would examine mandating airlines to compensate and cover expenses for customers facing “controllable airline cancellations” or delays, according to a White House official.

“When an airline causes a flight cancellation or delay, passengers should not foot the bill,” Buttigieg said in a statement. “This rule would, for the first time in US history, propose to require airlines to compensate passengers and cover expenses such as meals, hotels, and rebooking in cases where the airline has caused a cancellation or significant delay.”

Biden and Buttigieg will also announce that the department is launching an expanded Airline Customer Service Dashboard at FlightRights.gov, which shows which airlines “offer cash compensation, provide travel credits or vouchers, or award frequent flyer miles and cover the costs for other amenities,” according to the official.

No airlines currently provide cash compensation for preventable cancellations or delays, just one airline company guarantees frequent flyer miles, and two provide travel credits and vouchers, according to the official. Mandates for such compensation policies already exist in Canada and the European Union, the official added.

The proposed rule would also establish what constitutes a “controllable cancellation or delay.”

The proposal from the Biden administration comes as Buttigieg fends off criticism over a chain of flight cancellations at the end of last year and beginning of this year, as well as what Buttigieg himself has called an “uptick in serious close calls” between planes landing and taking off.

Amid last summer’s flight cancellations, Buttigieg called CEOs of the 10 largest airline companies and pressed them on stress testing their schedule and improving customer service. He put pressure on the CEOs in a letter, saying he would publish charts showing which airlines guaranteed which forms of compensation for canceled or delayed flights. Seven of those airlines — including Southwest — changed their policies before they were posted, and two followed suit soon after.

Ten airlines now guarantee meals, with nine guaranteeing hotel accommodations, when a delay or cancellation is the airlines, fault, according to the DOT.

 

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

easter egg basket shown, easter spending will be in the billions in the us...

Peter Johnston

Easter spending could bring a $22 billion golden egg for retailers

Easter spending might not be as high this year compared to 2023 but Americans are still expected to spend $177 each on the holiday.

3 hours ago

a person pumps gas, which is expected to lower in price in 2023...

Andrew Adams, KSL TV

Data shows significant uptick in gas prices over past month in Salt Lake area

AAA gas prices showed Utah with an average price of $3.77 as of Thursday morning, up from nearly $3.13 a month ago.

3 hours ago

Shopping carts are parked outside a Home Depot in Philadelphia...

MICHELLE CHAPMAN AP Business Writer

Home Depot buying supplier to professional contractors in a deal valued at about $18.25 billion

Home Depot will buy SRS Distribution, a materials provider for professionals, in a deal valued at approximately $18.25 billion.

13 hours ago

Four cats relaxing on chairs and a cat tree at Fawn's Family Rescue...

Heather Peterson

Fawn’s Family Rescue provides lounge to relax with adoptable cats

Fawn's Family Rescue recently opened its doors in Bountiful. The new cat lounge provides a comfortable way for people to hang out with feline friends.

23 hours ago

The Powder Baby Dry Shampoo team poses with its check after winning the 2024 Utah Entrepreneur Chal...

Logan Stefanich, KSL.COM

BYU student startup wins $30K at Utah Entrepreneur Challenge

BYU entrepreneur Kylee Black, who founded Powder Baby, said the cash prize will be instrumental in advancing her business.

1 day ago

IRS texts are bogus. Picture shows a sign saying "warning, scam alert" on a keyboard...

Britt Johnson

Millions to be paid for Utah’s largest real estate scheme settlement

Over $10 million in refunds will go to victims of a Utah-based real estate scheme following the settlement of a lawsuit.

1 day ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Biden administration will propose rule requiring airlines to compensate passengers for canceled or delayed flights