U.S. airline passengers can collect $1,300 when they are forced to give up their seat on an overbooked flight, a 63 percent increase, under a federal rule made final today.
Additionally, foreign carriers must release passengers from their aircraft stuck at U.S. airports within four hours or face fines as high as $27,500, and airlines must refund luggage fees if bags are lost, under the regulation issued by the U.S. Transportation Department.
“Airline passengers have a right to be treated fairly,” Transportation Secretary Ray LaHood said in a statement. The rule affects foreign carriers including British Airways Plc and Air France-KLM Group and domestic airlines such as Delta Air Lines Inc. and United Continental Holdings Inc.
