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New airline rules prioritize passenger protection 

By Isabella Vesperini

Posted December 20, 2024

Planes sit on the tarmac outside the Indianapolis International Airport

Often, flight schedules are pretty packed to increase use of the aircraft and generate more revenue. (WFIU/WTIU News)

The Department of Transportation recently announced new rules aimed at protecting passengers affected by airline disruptions.  

The new rules require airlines to compensate passengers whose flights are delayed, rebook cancelled flights for free and cover meals, lodging and transportation for stranded passengers. 

Yi Gao, associate professor at Purdue’s School of Aviation and Transportation Technology, said these kinds of protections are needed, especially during the holidays when more people are traveling. In 2023, approximately 18.4 percent of flight departures were delayed, and 0.51 percent were cancelled. About 17 percent of arrivals were delayed and 0.2 percent were cancelled.  

“I think the airlines are happy to help, but I think it will be a lengthy process,” he said. “It relies on your endless communication with the airline. Sometimes it will be very time-consuming, and not everyone really can afford that. So if this can become more of an automatic process, so when you experience this, airline will compensate for your loss, for your inconvenience.” 

Gao said he doesn’t think these rules will have an immediate impact on passengers’ willingness to travel. It will take some time to see the effects of these rules play out. 

“The reason why we travel is because we want to get to somewhere, not because we might be better compensated when we experience flight disruptions,” he said. “That's not our incentive, but I think it will make your trip less unpleasant when things are kind of not going so well.” 

These regulations might incentivize airlines to do their job better, Gao said, because they could start losing money when compensating people every time a flight is delayed or cancelled. In the U.S., an average of 7,000 to 9,000 flights are delayed every day. The cost to fly could also increase, but Gao said airlines will have to be strategic in their pricing so people are still willing to pay for it. 

“They [airlines] have to see the big picture; the thing is that airlines are not just a business, they are the supporting industry for society, so they really carry the country forward,” he said. “I think the airline industry understands that they need the support of the public as well, even if it drives up their cost a little bit.” 

Often, flight schedules are pretty packed to increase use of the aircraft and generate more revenue, Gao said. But if these new regulations do end up costing airlines more money, airlines may add more time between flights so there’s a smaller chance of a delay.  

“When you do more of this, then if one of the flights are delayed, then the subsequent flights operated by the same aircraft will be delayed as well. So instead of generating more revenue, it will drive your cost up,” he said. “So, I think airlines will be less aggressive. And also, airlines will try to slightly lower their utilization, because they need to find a sweet spot where you can maximize your revenue and lower the cost.” 

Under President Biden, the DOT has already enacted rules to protect passengers, such as automatic cash refunds and transparency around junk fees. As a result, the flight cancellation rate decreased to a record low of under 1.2 percent, the lowest it’s been in over 10 years.  

Other countries, such as the European Union, the United Kingdom and Canada have enacted similar passenger protections. Studies show that the likelihood and duration of flight delays have decreased in the European Union as a result of these regulations. 