DOT Proposes Airlines Pay at Least $200 Cash for ‘Stranded’ Passengers

The U.S. Department of Transportation on Thursday proposed requirements for airlines that have “stranded” passengers, including cash compensation of at least $200.

In addition to automatic cash payouts for delays of three hours or more, the DOT is proposing airlines rebook passengers “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.”

The DOT noted that “U.S. airlines received $54 billion in taxpayer bailouts during the COVID-19 pandemic,” and added that the European Union (EU), the U.K., and Canada “have adopted consumer protections that compensate passengers and provide services when an airline causes a significant delay.”

“Now that we are on the other side of the pandemic and air travel is breaking records, we must continue to advance passenger protections,” Transportation Secretary Pete Buttigieg said. “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.”

In late October, DOT rules went into effect that require airlines to give customers an automatic refund when their flight is canceled or “significantly changed,” their bag is lost, or amenities they paid for are not provided.

It is unclear how likely the proposals are to come to fruition. The public has 60 days to comment, and by then there will be a second Trump administration, which may not have the same priorities as the current DOT under President Biden.