US Considers $200 Minimum Cash Compensation for Stranded Passengers

The U.S. Department of Transportation is considering a new proposal that would require airlines to pay a minimum cash compensation of $200 to passengers stranded due to issues under their control. Depending on the circumstances, compensation could rise to as much as $775. This proposal is part of a broader initiative aimed at enhancing consumer protection for passengers facing flight cancellations or significant delays.

As part of this public proposal, airlines may also be required to cover affected passengers' meal and hotel accommodation expenses. This move comes amid a series of consumer protection efforts led by U.S. Transportation Secretary Pete Buttigieg, who is implementing new rules for airline refunds and increasing enforcement measures. Secretary Buttigieg's initiatives have also included a closer examination of airline loyalty programs and their impact on consumers. With an upcoming change in administration, it remains unclear whether these efforts will be continued.

President-elect Donald Trump has expressed his intention to reduce regulations deemed burdensome for businesses.