Airline passengers would have 24 hours to cancel reservations, get up to $1,300 if bumped

DOT: Airlines should pay bumped passengers more

WASHINGTON — The Obama administration wants to raise the amount airlines have to compensate passengers bumped from full flights to as much as $1,300. They pay up to $800 now.

The Transportation Department unveiled the proposals Wednesday. The proposed changes also would give passengers 24 hours to cancel reservations without penalty.

And the new rule would require airlines to fully and prominently disclose baggage fees, prohibit price increases after a ticket is purchased, and give passengers timely notice of flight status changes.

The proposal would also extend to foreign airlines a three-hour limit on the time airlines can keep passengers waiting on airport tarmacs.