More Airline Regulations?

The travel industry, particularly airlines, faced increased scrutiny and calls for new regulations in the fall of 2023. The US DOT announced plans for a rulemaking that would require airlines to compensate passengers for delays or cancellations caused by the airlines. Congress is also considering legislation to address various airline practices. However, capping or abolishing fees, such as cancellation or change fees, would result in higher ticket prices and a more regressive fare structure. Airlines already have incentives to minimize delays and cancellations, as they hurt their reputations and customer trust. Operational challenges like extreme weather and FAA shortcomings contribute to delays and cancellations. Penalizing airlines for these disruptions would be inconsistent with other passenger industries and would not save passengers money. Low-income flyers would be particularly affected by the abolition of fees. The airline industry operates in a competitive market, and regulations would hinder competition and harm consumers. Ultimately, allowing the market to determine airline practices is beneficial for travelers.