ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Don’t panic if an airline leaves you stranded — you might be entitled to financial compensation

Amid more flight delays and other unforeseeable events at airports, the Department of Transportation will compensate passengers. Here's what we know.
UPDATED SEP 18, 2024
Source: Getty Images | kieferpix (Representative)
Source: Getty Images | kieferpix (Representative)
When it comes to traveling, there's an old saying: "Hope for the best, prepare for the worst." Airline passengers were asked to prepare for the worst during the recent outages that jeopardized thousands of flights and left travelers stranded at airports.
 
The Department of Transportation wants to improve flight experiences for Americans, and they have been working on ways to compensate stranded travelers. The DOT has requested that major airlines allow free flight rebooking, provide in-flight meals, and accommodate any hotel arrangements necessary for those whose flights faced ongoing troubles within the industry. Here's what we know.

 

What action is the Department of Transportation taking to compensate stranded travelers?

A Southwest Airline flight board with all departing and arriving flights
Source: Getty Images
 

Per FOX Business, "this rule would, for the first time in U.S. 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," Transportation Secretary Pete Buttigieg said in a statement breaking down the specifics of the new notion, "when an airline causes a flight cancellation or delay, passengers should not foot the bill." However, the rule does have guidelines.

The proposed rule would come into effect "when there is a controllable airline cancelation or significant delay." Suggested forms of compensation for controllable airline cancellations or significant delays could be a meal or meal voucher, overnight accommodations, ground transportation to and from a hotel, or flight rebooking. The rate at which customer service agents address passenger concerns over controllable airline cancellations will also be re-evaluated by airline companies.

This measure of action amends rulings over flight delays and cancellations previously issued by the Department of Transportation. Amendments to their stance on whether passengers would be eligible for financial compensation over flight delays have been made in hindsight of the airline pandemonium that has caused greater upset within the industry. It was reported that federal law didn't require airlines to compensate passengers.

What form of compensation can stranded travelers expect?

 
A United Airlines employee helping a passenger with a flight departures board behind them
Source: Getty Images

In defense of their new ruling, the Department of Transportation has launched FlightRights.gov to keep American travelers up to date about what they may be entitled to. So far, these incentives have been broken into three major categories: cash compensation, travel credit or voucher, and frequent flier miles. The incentives can be redeemed when a cancellation or delay results in a passenger waiting three hours or more from the scheduled departure time.

Forbes reports that similar guidelines have already been in practice by Canadian and European airlines. The Department of Transportation hasn't defined what a controllable airline cancellation or significant delay means when asking airlines to offer some sort of payout to affected patrons. Before this rule, no major U.S. airline offered cash compensation following a three-hour delay. Travelers should know that these new mitigations may take months to go into effect.

The Department of Transportation has worked to obtain reasonable compensation for travelers.

 
A flight attendant with in-flight refreshments
Source: Getty Images

For those saddled with unnecessary costs added onto their already-hefty travel fees, the Department of Transportation is holding airline companies responsible for repayment. This is a reassuring step toward ensuring the U.S. is prepared if the industry faces extreme turmoil again. Airline companies have the means of generating an income and compensating passengers doesn't pose any threat of loss against their earnings.

Providing compensation to ensure customer satisfaction won't even dent airline companies' earnings. The compensation might help ease travelers' pre-flight anxiety now that a "safety net" has been implemented.

This article originally appeared on 8.5.23.

MORE ON MARKET REALIST
The owner of the collection of Danny Lyon SNCC Civil Rights Posters was left astonished in the end.
8 hours ago
After Harrison bought a signed speed bag for $250, he happened to meet the star at a dinner.
10 hours ago
The contestant, Doug, had a hard time coming up with a sensible answer.
13 hours ago
While Jennings performed a half-baked trick, it still managed to thoroughly entertain the fans.
1 day ago
The player, Andy Schwartz registered the first loss of a car since Seacrest took over as host.
1 day ago
The guest kept his grandparents' antique instruments under his bed for years.
1 day ago
Harris wasn't the only one who came up with an answer that shocked everyone.
1 day ago
Despite getting a high auction estimate, the owner of the Meiji Period lamp chose to keep it.
2 days ago
The player, Gabriel Berkowitz pulled off a perfect night winning over $45,000 and a car.
2 days ago
Harvey showed no mercy after he found out that Sweet Lou Dunbar didn't know how apps work.
2 days ago
The founder of Plop Star made an unforgettable entry and a sad exit from the show.
3 days ago
The host is otherwise quick to reprimand families for backing absurd answers.
3 days ago
While the Marvel comic book fetched a $50,000 appraisal, Harrison felt it was too rich for him.
3 days ago
Jimmy Alexander became the first player to lose a brand-new car on season 43 of the show.
4 days ago
The contestant, Brianne Peterson got extremely unlucky with her letter picks for the final puzzle.
4 days ago
The guest was told that the Jasper Johns Flag Print wouldn't be valuable but it was worth thousands.
4 days ago
It didn’t help that Alvin Rosales was playfully scolded by the host just before losing the Bonus Round.
5 days ago
The photos featured some looks of the show's legendary former host, Alex Trebek, as well.
5 days ago
The player, Kate Stuntz, pulled off a miraculous win to take home over $68,000 and a trip to Iceland.
5 days ago
The owner couldn’t believe the value of Jane Peterson’s "The Floats" gouache painting.
6 days ago