IATA takes aim at US passenger compensation proposal

Monday, 12 May, 2023 1

The International Air Transport Association (IATA) has predictably hit out at the US Department of Transportation’s new passenger compensation proposals.

IATA says the move will raise the overall cost of air travel.

The US administration plans mandatory financial compensation for travelers for out of pocket expenses during long flight delays and cancelations.

The rule will be issued later this year.

IATA says the 10 largest US carriers already offer meals or cash vouchers to customers during extended delays.

Nine of them also offer complimentary hotel accommodations for overnight cancellations.

However, this is not currently mandatory.

“Airlines work hard to get their passengers to their destinations on time and do their best to minimize the impacts of any delays,” said Willie Walsh, IATA’s Director General.

“Airlines already have financial incentives to get their passengers to their destination as planned. Managing delays and cancellations is very costly for airlines.”

“The added layer of expense that this regulation will impose will not create a new incentive, but it will have to be recouped on ticket prices.”

IATA says most situations would not be covered by this regulation as weather plays a big part in air travel delays and flight cancellations.

It says these ‘punitive regulations’ have no impact on the level of flight delays and cancellations.

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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