Biden administration presses airlines to compensate passengers for delays and cancellations
- President Biden to announce new rules on compensation for delays and cancellations.
- Passengers would get cash and refunds for some controllable events.
- Measures would be similar to EU261 rules that give passengers payouts for long delays and cancellations.
The Biden administration is proposing a set of rules that would require airlines to compensate passengers for any drastic flight delays or cancellations.
As a part of this push, the U.S. Department of Transportation will mandate that airlines cover expenses for meals, hotels and rebookings whenever passengers are facing significant delays or cancellations caused by an airline. It would require cash compensation in addition to potential refunds.
"Many [travelers] missed family gatherings; spent Christmas at an airport; waited countless hours in line or on the phone because there weren't enough personnel — that's unacceptable," President Joe Biden said at Monday afternoon press conference. "And while flight delays and cancellations have come down since then, there's still a problem."
The DOT also rolled out the website FlightRights.gov — an update to the previous airline consumer service dashboard that notes which airlines already offer cash compensation, travel credits, vouchers or frequent flyer miles for delays and cancellations.
None of the major U.S. airlines currently offer cash compensation for cancellations, according to the dashboard. Only one airline gives frequent flyer miles and two guarantee travel credits or vouchers to passengers who experience significant delays or cancellations caused by something within the airline's control, according to the DOT.
Additionally, the new rule would define what constitutes a "controllable cancellation or delay."
“When an airline causes a flight cancellation or delay, passengers should not foot the bill,” U.S. Transportation Secretary Pete Buttigieg said in a statement.
Related: Airlines pushed again by DOT to be better on delays and cancellations
The proposal comes as the Biden administration has tried to hold the airline industry accountable for various consumer protection issues. These issues include free family seating and fee disclosures for ancillary costs, along with flight changes and cancellations.
Airlines have also faced scrutiny from Washington for a stumbling recovery from the pandemic filled with flight cancellations and delays. Last summer, thousands of flights were delayed or canceled daily due to air traffic control and pilot staffing issues.
In the thick of the COVID-19 pandemic, airlines also received more than $50 billion in government aid to stave off any layoffs and to equip them to handle the return of passenger travel. However, the industry's lack of preparation for growing customer demand has frustrated lawmakers.
"The American taxpayer stepped up in 2020 in the last administration in the early days of the pandemic to provide nearly $50 billion in assistance to keep the airline industry and its employees afloat," Biden said at the conference. "That's why our top priority has been to get American air travelers a better deal."
An April Government Accountability Office report found that cancellations and delays caused by airlines in the years coming out of COVID-19 significantly outpaced pre-pandemic levels. These issues became more common as travel demand increased. As a result of the delays and cancellations, the complaints the DOT received from passengers regarding flight issues also rose significantly, according to the GAO report.
Airlines for America, a trade group that represents the major U.S. airlines, said in a statement that carriers have taken responsibility for the issues that are within their control and have worked toward strengthening their operational reliability.
"U.S. airlines have no incentive to delay or cancel a flight and do everything in their control to ensure flights depart and arrive on time," A4A said.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.