• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
FinanceAirline industry

Have you been screwed over by an airline yet this summer? The government has let them create their own rules since 1978

By
Janet Bednarek
Janet Bednarek
and
The Conversation
The Conversation
Down Arrow Button Icon
By
Janet Bednarek
Janet Bednarek
and
The Conversation
The Conversation
Down Arrow Button Icon
June 20, 2023, 2:59 PM ET
Ralph Nader
Ralph Nader helped kickstart the airline passenger rights movement.Chip Somodevilla/Getty Images

U.S. airline passengers in early 2023 faced the highest rate of flight delays since 2014. That heightened level of delays came shortly after December 2022, when Southwest Airlines experienced an epic meltdown, canceling 71% of its flights.

Recommended Video

In response, on May 8, 2023, the Biden administration proposed new rules that would require airlines to compensate passengers whose flights are canceled or significantly delayed because of causes – unlike bad weather – that are under the control of the airlines. Under the new rules, the airlines would need to offer meal vouchers, overnight accommodations and ground transportation to and from a hotel when customers are stranded.

If enacted, those new rules would provide U.S. passengers with rights and protections more in line with those currently afforded passengers in the European Union and Canada.

As a professor of history who researches American aviation, I’m aware that consumer advocates have pushed for greater passenger rights for airline travelers in the U.S. since at least the early 1970s – when Ralph Nader sued an airline for bumping him from an overbooked flight. For the most part, especially since the Airline Deregulation Act in 1978, such efforts have failed, and airlines have been able to set and enforce their own policies.

Limits of Rule 240

Ralph Nader’s suit, which unsuccessfully sought to end the practice of overbooking flights, highlighted that there were regulations already in place concerning passengers bumped from flights because of overbooking. Those regulations, however, did not cover passengers whose flights were delayed or canceled.

There was, however, something known as Rule 240. As part of the Civil Aeronautics Board’s oversight of U.S. airlines, airlines had to submit information on all aspects of their operations, including their flight delay and cancellation policies. In these required documents, that information was often listed under Rule 240. However, each airline determined its own flight delay and cancellation policies under Rule 240. The airlines were not required to compensate passengers in any particular way, only to state what their policy was.

As U.S. airlines became deregulated in the late 1970s and early 1980s, many, though not all, included the provisions they had previously submitted to the Civil Aeronautics Board in their contracts of carriage – the “fine print” associated with airline tickets. Many contracts of carriage stated that in the case of a delay or cancellation, the airline would book a passenger on its next available flight or place them on a flight on another airline that would get them to their destination sooner.

Rule 240 or its equivalent under the contract of carriage varies by airline and primarily focuses on rebooking passengers. Some airlines do offer meal vouchers and hotel accommodations, but only when the problem is caused by the airline and not something like weather or a labor strike. Consumer advocates encourage passengers to invoke Rule 240, but airlines will likely provide only what is stated in their contract of carriage.

Push for a passenger bill of rights

In recent decades, consumer advocates and even some lawmakers have sought to enshrine more substantial air passenger protections into federal law.

In December 2006, American Airlines held passengers on a plane on the tarmac in Austin, Texas, for eight hours with little food or water. Kate Hanni, a passenger on that flight, lobbied Congress to pass an extensive passenger bill of rights. In response, the Department of Transportation did announce new rules in 2009 that said airlines could not hold domestic flights on the tarmac for more than three hours and must provide access to water and lavatories during such delays.

Those rules were expanded in 2011 to reimburse baggage fees to customers whose bags are lost, increase compensation for passengers bumped from oversold flights, and extend the rule concerning tarmac delays to international flights, with a four-hour limit.

More recently, in November 2021, Sen. Richard Blumenthal of Connecticut introduced Senate Bill 3222 to establish an airline passengers’ bill of rights. However, it never made it past the Committee on Commerce, Science and Transportation.

EU paves the way

U.S. passengers flying within the European Union can experience what it is like when passenger rights are guaranteed under law rather than left to the discretion of airlines.

EU legislation mandates that airlines provide passengers with certain levels of care including flight rebooking, meals, hotel vouchers and, in some instances, cash compensation – which varies depending on the length of the delay and the distance of the flight. All travelers who are flying within the EU, or whose flight arrives to the EU on an EU carrier, or departs from the EU on any carrier, are covered under that legislation.

The Biden administration proposal would bring U.S. airline passenger protections more in line with the EU where such protections are mandated and not at the discretion of the airline. Such an effort, while likely welcomed by passengers, is also likely to meet opposition from the airlines – which have enjoyed a long history of setting their own rules.

Janet Bednarek is Professor of History, University of Dayton.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Janet Bednarek
See full bioRight Arrow Button Icon
By The Conversation
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

A television screen showing Goldman Sachs' stock price plays in front of a Goldman Sachs sign
CryptoCryptocurrency
Goldman Sachs makes surprise jump into Bitcoin ETFs with a product one analyst dubs “Boomer Candy”
By Jack KubinecApril 14, 2026
11 minutes ago
Transmission lines stand at the American Electric Power Co. (AEP) coal-fired John E. Amos Power Plant at dusk in Winfield, West Virginia. Photographer: Luke Sharrett/Bloomberg via Getty Images
Energypower
U.S. utilities are planning a $1.4 trillion spending spree, up 30%, over the next five years amid the AI construction boom
By Jordan BlumApril 14, 2026
16 minutes ago
gen z
Real Estateaffordability
The starter economy is broken
By Nick LichtenbergApril 14, 2026
22 minutes ago
US President Donald Trump
EconomyTariffs
Trump’s agricultural tariffs hit all 50 states—driving up food prices, crushing exports, and leaving farmers with nowhere to turn
By Tristan BoveApril 14, 2026
1 hour ago
Bitcoin, Ethereum approach two-month highs as markets grow optimistic over U.S.-Iran peace negotiations
CryptoBitcoin
Bitcoin, Ethereum approach two-month highs as markets grow optimistic over U.S.-Iran peace negotiations
By Ben WeissApril 14, 2026
2 hours ago
mike rowe
Successskills
Dirty Jobs host Mike Rowe is giving away $10 million to get Gen Z into trades—and says the skills gap has never been worse
By Jake AngeloApril 14, 2026
3 hours ago

Most Popular

Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
Success
Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
By Fortune EditorsApril 13, 2026
1 day ago
Retirees are facing a $345,000 bill they never saw coming — and most aren't prepared
Commentary
Retirees are facing a $345,000 bill they never saw coming — and most aren't prepared
By Fortune EditorsApril 14, 2026
9 hours ago
Current price of gold as of April 13, 2026
Personal Finance
Current price of gold as of April 13, 2026
By Fortune EditorsApril 13, 2026
1 day ago
'People are trying to be creative': Tariff-battered American companies are so cash-starved they are using refund claims as collateral for loans
Economy
'People are trying to be creative': Tariff-battered American companies are so cash-starved they are using refund claims as collateral for loans
By Fortune EditorsApril 12, 2026
2 days ago
He was coding at 12 like Elon Musk and became one of Google’s youngest-ever CMOs—but now says Gen Z is better off ice skating than learning to code
Success
He was coding at 12 like Elon Musk and became one of Google’s youngest-ever CMOs—but now says Gen Z is better off ice skating than learning to code
By Fortune EditorsApril 14, 2026
12 hours ago
'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
Politics
'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
By Fortune EditorsApril 11, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.