Biden wants airlines to give cash compensation for some cancellations, delays

LINCOLN, Neb. (KLKN) — As we approach the peak of summer travel, the Biden administration proposed a new rule on Monday to protect consumers from canceled flights.

“The airlines have been a key part of our economy, and they’ve been critical partners in a number of important initiatives,” President Joe Biden said. “But I know how frustrated many of you are with the service you get with U.S. airlines.”

The White House said no airline offers cash compensation, in addition to refunds or amenities, in cases of preventable delays or cancellations. 

The proposed regulations could require them to do so.

A Lincoln travel agency said this is good news for consumers. 

“Currently if that happens, they usually try to give them a hotel room and a meal voucher,” said Steve Glenn with Executive Travel. “Now what the administration says is, ‘They need to do more,’ which I agree with, and I think the consumer does, too.” 

The White House said there are similar policies in Canada and the European Union. The administration said a study shows that such regulations led to fewer delays in European countries.

“This doesn’t affect weather cancellations, only cancellations because an airline (overschedules), has a pilot shortage or anything like that,” Glenn said. 

He said this is huge for people who live far away from airports.

“If you live in Grand Island or Kearney, Nebraska, you’re going to take three hours to travel to Omaha,” Glenn said. “So, if you get to Omaha and your flight has been canceled because the airlines don’t have pilots, then you have a big inconvenience.” 

The Biden administration said this is just the start of the rulemaking process. 

In addition to these changes, it will also be expanding its online Airline Customer Service Dashboard, which tracks each airline’s policies on refunds.