New Regulations for Airlines: Ensuring Fair Compensation for Flight Disruptions and Lost Luggage

Pete Buttigieg, the Minister of Transport, has announced new regulations that require airlines in the United States to provide automatic refunds and compensation to passengers for flight disruptions and lost luggage. In a statement released on Monday, the Department of Transport announced that Lufthansa, KLM, and South African Airways have agreed to reimburse passengers for cancellations or significant changes due to the Covid-19 pandemic.

Lufthansa agreed to refund $775 million and pay a penalty of $1.1 million under these new regulations. Strict guidelines have been set by the ministry regarding what constitutes a “significant change” to a flight, including changes in arrival or departure times exceeding three hours for domestic flights and six hours for international flights, as well as other modifications like a different airport, additional stopovers, or a downgrade in service class.

Despite a record number of scheduled flights in 2023, the flight cancellation rate dropped below 1.2%, the lowest level in over a decade. These new measures aim to protect passenger rights and ensure they are fairly compensated in case of any flight disruptions. The American Department of Transport’s actions against three major airlines demonstrate its commitment to protecting consumer rights during these challenging times.