Passengers Will Soon Receive Cash for Delayed Flights, Says Biden

The Biden administration announced that airlines might soon be mandated to compensate travelers for significant flight delays and cancellations that are within their control.

In a White House address, President Joe Biden and Transportation Secretary Pete Buttigieg revealed plans for a rule requiring airlines to provide compensation—such as meals, lodging, ground transport, cash, miles, or travel vouchers—during major disruptions that airlines cause, including staffing issues and equipment failures, but excluding weather-related delays.

“You rely on that airline to deliver the service you’ve paid for,” Buttigieg stated. “Today, we are announcing new measures aimed at ensuring airlines fulfill that responsibility.”

Biden highlighted two initiatives the Transportation Department is implementing to enhance passenger protections. The first involves an expansion of the Airline Customer Service Dashboard launched last fall, which aims to clarify airline compensation policies for consumers. As of today, this dashboard also lists any extra compensation options provided by each airline, such as cash, miles, or travel vouchers. Currently, only Alaska Airlines and JetBlue offer credits or travel vouchers for passengers who face cancellations that result in waiting three or more hours from their original departure time.

In his address, Biden praised the dashboard for motivating airlines to enhance compensation for passengers when the airline is at fault.

“A year ago, no major airline offered any compensation beyond the ticket price if they caused a delay,” Biden stated. “We challenged them to improve, and they did. Airlines began modifying their policies; now, nine major carriers cover hotel stays, ten cover meals, and ten allow free rebooking. That’s significant savings.”

The second phase will take place later this year at an unspecified time. Biden mentioned that his administration is in the process of drafting a new regulation mandating that all U.S. airlines compensate passengers for meals, hotels, taxi or rideshare costs, and rebooking fees, in addition to cash, miles, or travel vouchers—along with ticket refunds. Currently, no major U.S. airline guarantees cash compensation for delays or cancellations that are within their control.

“If your flight is heavily delayed or canceled, you deserve more than just a refund for your ticket,” Biden emphasized. “You deserve complete compensation. Your time is valuable, and the effects on your life are significant.”

Airlines for America, a trade organization representing the majority of the largest U.S. airlines, issued a statement today asserting that airlines “have no incentive to delay or cancel flights” and noted that over half of cancellations in 2022 and 2023 were due to severe weather or traffic control issues.

“Airlines have acknowledged their responsibilities regarding challenges they can control and are actively striving to enhance operational reliability,” stated Airlines for America.

During his address today, Biden highlighted that later this year, the Transportation Department will finalize a new rule requiring airlines to disclose the total flight cost, including any extra fees for baggage or seat selection, at the time of booking.

These regulations represent the latest efforts by the Biden administration to hold airlines accountable and enhance the customer experience. Earlier this year, the DOT levied millions in fines against airlines for failing to provide timely refunds to passengers whose flights were canceled or significantly delayed. The department also issued guidance to ensure that young children are seated with their guardians at no extra charge. Currently, Alaska, American, and Frontier guarantee adjacent seating for children aged 13 and under, according to the Transportation Department’s dashboard, while United is introducing a new seating map feature for parents to book adjacent seats for free.