The International Air Transport Association (IATA) has criticised the decision by the US Department of Transportation (DOT) to raise the cost of air travel by mandating airlines provide financial compensation to travellers for flight delays and cancellations.

According to the announcement, the rule will be issued later this year. DOT’s Cancellation and Delay Scoreboard shows that the 10 largest US carriers already offer meals or cash vouchers to customers during extended delays, while nine of them also offer complimentary hotel accommodations for passengers affected by an overnight cancellation.

IATA view

“Airlines work hard to get their passengers to their destinations on time and do their best to minimize the impacts of any delays. Airlines already have financial incentives to get their passengers to their destination as planned. Managing delays and cancellations is very costly for airlines. And passengers can take their loyalty to other carriers if they are not satisfied with service levels. The added layer of expense that this regulation will impose will not create a new incentive, but it will have to be recouped –which is likely to have an impact on ticket prices,” said Willie Walsh, IATA’s Director General.

‘Unrealistic expectations’

Additionally, the regulation could raise unrealistic expectations among travellers that are unlikely to be met, IATA said. Most situations would not be covered by this regulation as weather is responsible for the bulk of air travel delays and flight cancellations, the organisation suggested.

Air traffic controller shortages played a role in last year’s delays and are also an issue in 2023, as the Federal Aviation Administration has acknowledged with its request that airlines reduce their flight schedules to the New York metropolitan area.

Runway closures and equipment failures also contribute to delays and cancellations. Additionally, supply chain issues in the aircraft manufacturing and support sectors have resulted in aircraft delivery delays and parts shortages over which airlines have little or no control but which impact reliability.
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