Citing inflation, the U.S. Department of Transportation on Wednesday issued a final rule increasing the base compensation passengers receive from airlines in certain cases of involuntarily denied boarding and mishandled baggage. The move is the first such increase since 2015.
DOT increased the base compensation for air passengers involuntarily denied boarding due to an oversold flight to 200 percent of the one-way fare or $775, whichever is lower, for those whose arrival is delayed at least an hour, up from $675. For those delayed at least two hours, compensation is set at 400 percent of the one-way fare or $1,550, whichever is lower, up from $1,350.
DOT also clarified that this compensation is the minimum amount carriers must offer those passengers involuntarily denied boarding due to an oversold flight, not a maximum. There is no maximum compensation carriers may offer passengers in this situation. Federal regulations since 2018 have prohibited airlines from removing passengers who have checked in and boarded.
DOT raised the minimum baggage liability for domestic air service carriers can set to $3,800 from $3,500. There is no maximum compensation limit, but carriers can limit liability to that figure.
The compensation changes will take effect April 13.