The DOT proposes that airlines pay at least $200 cash for “stranded” passengers


Travelers wait in line for departures at the Detroit Metropolitan Wayne County Airport on Dec. 1, 2024 in Romulus, Michigan
The Detroit Metropolitan Wayne County Airport in Romulus on December 1, 2024 will see travelers waiting in the departures line.

Emily Elconin/Getty Images

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 stated that “U.S. airlines received $54 billion in taxpayer bailouts during the COVID-19 pandemic,” The European Union (EU), United Kingdom, and Canada are also included. “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."

Late October, DOT regulations went into effect requiring airlines to offer customers an automatic cash refund when a flight is canceled. “significantly changed,” If their bag gets lost, they may not receive the services or amenities for which they paid.

Uncertainty surrounds the likelihood of these proposals becoming reality. There are 60 days for the public to make comments. However, by that time, there could be a Trump second administration with different priorities.

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leadzevs/ author of the article

LeadZevs (John Lesley) is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.

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