The International Air Transport Association (IATA) has expressed disappointment over the Biden Administration’s introduction of a compensation scheme for airline delays and cancellations.
The move mirrors similar policies in Europe and Canada, which IATA claims have failed to address the root causes of disruptions, most of which lie beyond airline control. Airlines already have measures in place to support passengers during disruptions and strong incentives to minimize delays. According to IATA, the EU261 regulation, which inspired the U.S. plan, costs airlines over $5 billion annually, costs that are ultimately passed on to consumers through higher fares and reduced choices. Highlighting the success of the deregulated U.S. airline industry, IATA urged the government to focus on addressing systemic issues like understaffed and outdated air traffic control systems instead of implementing measures that could drive up travel costs and reduce accessibility.