Three U.S. airlines on Wednesday warned of higher fuel costs in the third quarter due to a jump in crude prices, adding to pressures the industry faces from expensive labor contracts.
25.08.2023 - 14:32 / skift.com / Pete Buttigieg / Air Canada / Southwest Airlines / Airlines
The U.S. Transportation Department (USDOT) said it planned to seek higher penalties for airlines and others that broke consumer protection rules, saying they were necessary to deter future violations.
USDOT said in a notice posted on its website it intended to hold airlines, ticket agents and others “accountable and deter future misconduct by seeking higher penalties that would not be viewed as simply a cost of doing business.”
Airlines for America, an industry group, declined comment.
The notice comes after Transportation Department Secretary Pete Buttigieg vowed in recent days to take a hard line on Southwest Airlines if it failed to compensate travelers after canceling nearly 16,000 flights in the week ending Dec. 29.
White House press secretary Karine Jean-Pierre said Tuesday the Transportation Department “will seek fines from Southwest if it doesn’t cover” required costs.
USDOT fines for airline consumer violations have often been a fraction of potential penalties. Last year, Air Canada agreed to a $4.5 million settlement to resolve a USDOT investigation into claims that thousands of air passenger refunds had been delayed. USDOT initially sought a $25.5 million penalty.
Air Canada got $2.5 million credited toward the settlement for passenger refunds and paid only $2 million in fines.
USDOT has proposed new consumer protection rules. Buttigieg successfully prodded airlines in August to make “significant changes” to customer service plans. Nearly all agreed to offer passengers meals and overnight stays for delays within their control.
In November, USDOT imposed penalties on another six airlines totaling just $7.25 million after they agreed to issue $622 million in passenger refunds.
Some in Congress and many state attorneys general want USDOT to get tougher on airlines.
In August, a bipartisan group of 36 state attorneys general said they and the Federal Trade Commission (FTC) should have new powers to investigate airline passengers’ complaints. Under a 1958 law, passenger airlines are exempt from FTC oversight and most state investigations for consumer complaints.
“Americans are justifiably frustrated that federal government agencies charged with overseeing airline consumer protection are unable or unwilling to hold the airline industry accountable and to swiftly investigate complaints,” the attorneys general said.
Three U.S. airlines on Wednesday warned of higher fuel costs in the third quarter due to a jump in crude prices, adding to pressures the industry faces from expensive labor contracts.
Air Canada has apologized and said it is following up with two passengers after they were booted from an August 26 flight.
There are problems at two of the nation’s top five airlines. Labor problems.
Air Canada is expanding its international flying schedule for the summer of 2024, especially to destinations across Europe, including a new year-round route between Montreal and Madrid.
The number of Canadian pilots seeking to fly in the United States tripled in 2022, according to previously unreported U.S. government data, raising fears of deepening shortages in Canada as pilots seek higher wages.
The U.S. Department of Transportation (DOT) just revealed that it has levied a $4.1-million fine against American Airlines (AA) for keeping thousands of passengers onboard planes that sat on airport tarmacs for several hours without the option to deplane.
Southwest Airlines recently made changes to its pre-flight boarding policies by limiting the options for passengers to purchase a better spot in line for an extra fee.
Delays are an unpleasant but inevitable part of air travel, but delays on the tarmac after boarding the airplane can be especially frustrating — and potentially dangerous.
The Transportation Department fined American Airlines $4.1 million on Monday, saying the carrier violated federal rules by keeping passengers stranded on airport tarmacs for hours on dozens of occasions in recent years.
The deadly wildfires on the island of Maui are likely to affect visitor — and airline — demand to the island for the “foreseeable future,” analysts at T.D. Cowen said Friday.
It’s not often that travelers have something to look forward to at Newark Liberty International Airport. The new $2.7 billion Terminal A will open in December, the latest in a series of major airport projects opening around the U.S. this year.
Good morning from Skift. It’s Tuesday, January 3, and here’s what you need to know about the business of travel today.