Airlines Must Pay More for Bumps, But Get Govt Grace Period Till March
Published Date: 2/20/2025
Rule
Summary
Starting January 22, 2025, airlines had to pay more if they bump you off a flight or lose your bags. But the government is giving airlines a break and won’t enforce these new rules until March 20, 2025. So, if you fly in the U.S., expect higher compensation limits soon, but airlines get a little extra time to adjust.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Higher Denied-Boarding Payouts
The rule raised the maximum payments airlines can charge for denied boarding from $775 and $1,550 to $1,075 and $2,150. The final rule became effective January 22, 2025, which means if you are involuntarily denied boarding you could be entitled to these higher amounts.
Higher Domestic Baggage Liability
The rule raised the liability limit U.S. carriers may impose for mishandled domestic baggage from $3,800 to $4,700. The final rule took effect January 22, 2025, so the maximum the carrier may be liable for per passenger increased to $4,700.
Enforcement Delayed to March 20, 2025
On February 20, 2025, DOT announced it will not take enforcement action for failures to comply with the October 24, 2024 final rule until March 20, 2025. That gives regulated entities extra time before DOT will enforce the new denied boarding and baggage liability limits.
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