Airline passengers in the US will now be entitled to $1,300 when they are forced to give up their seat on an overbooked flight, a 63% increase on the current rules.
New Federal rules from the US Transportation Department have also stated that foreign carriers must release passengers from their aircraft stuck at US airports within four hours or face fines as high as $27,500. Those airlines are also required to refund luggage fees if bags are lost.
“Airline passengers have a right to be treated fairly,” Transportation Secretary Ray LaHood said in a statement.
LaHood’s rule also would let passengers cancel reservations within 24 hours of booking a flight without penalty, prohibit price increases after tickets are purchased and require airlines to notify consumers of delays of more than 30 minutes.