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HomeFinanceBiden proposes airlines offer cash compensation for flight cancellations or big delays

Biden proposes airlines offer cash compensation for flight cancellations or big delays


President Joe Biden on Monday is rolling out a plan that targets how airlines handle flight cancellations that are within a carrier’s control, as well as significant delays.

Biden is slated to appear with Transportation Secretary Pete Buttigieg around 1:45 p.m. Eastern to talk about a rulemaking process that would examine requiring airlines to provide compensation in addition to refunds and other amenities for passengers, a White House official said.

The rulemaking also aims to look at having carriers offer a meal or meal voucher, overnight accommodations, ground transportation to and from a hotel and rebooking, as well as timely customer service during and after periods of widespread flight irregularities, according to the official.

In addition, Biden is slated to announce an expanded dashboard for customers of U.S. airlines that shows which carriers currently offer cash compensation or cover other expenses when flights don’t take off as scheduled. That would build on an effort launched around Labor Day weekend last year.

From MarketWatch’s archives (September 2022): These U.S. airlines will cover meals, hotels when they’re at fault, as Biden White House touts ‘huge win for American travelers’ before Labor Day rush

A fund tracking domestic airlines, the U.S. Global Jets ETF
JETS,
+1.06%

was trading sharply higher on Monday, boosted by an analyst upgrade for American Airlines
AAL,
+4.33%
,
while the main U.S. stock gauges
SPX,
-0.10%

DJIA,
-0.22%

dipped.



This story originally appeared on Marketwatch

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