Travel chaos: Brain Kelly’s tips for flying smarter

Key Concepts

• Flight Disruptions: Cancellations and delays impacting air travel.
• FAA Mandates: Federal Aviation Administration regulations on airlines.
• Air Traffic Control (ATC): The system managing aircraft movement.
• Passenger Rights: Entitlements for travelers when flights are disrupted.
• Refunds: Monetary compensation for canceled flights.
• Credit Card Benefits: Perks offered by credit cards for travel disruptions.
• DOT Rules: Department of Transportation regulations concerning refunds.
• Annual Fees: Yearly charges for credit cards.
• Sign-up Bonuses: Incentives offered by credit card companies for new cardholders.
• Points Transfer: Ability to move credit card reward points to airline loyalty programs.

Flight Disruptions and Current Situation

The discussion begins by addressing the ongoing issues with flight disruptions, with a hopeful outlook for Thanksgiving travel. Brian Kelly notes that while the FAA is mandating 6% cuts, airlines are only implementing 4% cuts, and no major cancellations have been posted. He attributes this to intense lobbying efforts by airlines, emphasizing that air traffic control officers are back and staffing levels are good, further bolstered by $10,000 bonuses. Kelly anticipates a potential lifting of the 6% mandate soon, possibly within the current week.

Despite this optimism, current FlightAware numbers show a significant number of cancellations and delays. As of the day of the discussion, there were 1,893 total delays and 626 cancellations, with Chicago, Atlanta, and Newark being the worst-affected airports. While this is an improvement from the previous weekend's "debacle" where over 50% of flights were impacted, it's still considerably higher than a normal day's 200-250 cancellations.

Lessons Learned and Proactive Travel Strategies

Kelly stresses the importance of proactive measures for travelers. He highlights that many individuals impacted by recent disruptions never received email or text notifications. His key advice is to "stay ahead of the game" by:

• Getting the airline app: This allows for real-time updates.
• Continuously checking the app: Waiting for official notifications might mean missing out on rebooking opportunities, as seats on other flights can be quickly filled.
• Understanding airline rebooking policies: Airlines are not always proactive in rebooking passengers.

Passenger Entitlements and Refund Policies

A crucial point raised is what travelers are entitled to when flights are canceled.

• Refunds: If an airline cancels a flight, passengers are owed a refund if they choose not to accept the airline's rebooking option. It's important to note that passengers are not entitled to both a refund and compensation for being rebooked.
• No Passenger Bill of Rights in the US: Unlike Europe, where passengers receive a few hundred Euros for delayed or canceled flights, the United States does not have a similar comprehensive passenger bill of rights.
• Domestic Delays: For domestic flights, a delay of three hours or more generally entitles passengers to a refund.

Credit Card Benefits for Travel Disruptions

Kelly emphasizes the significant role credit cards play in mitigating the impact of flight delays and cancellations.

• Coverage: Credit cards can cover expenses like hotels and Ubers when flights are delayed or canceled.
• Best Travel Cards:
  • Amex Platinum: While its annual fee has increased significantly (approaching $1,000), it offers the best protection for flight cancellations, including paying for hotels.
  • Chase Sapphire Reserve: This card provides $500 per person in reimbursements if a flight is delayed six hours or more. This benefit allows cardholders to book their own accommodations and transportation rather than waiting in long lines for airline vouchers.

Kelly advocates for using these credit card benefits to arrange one's own solutions, such as booking a rental car to get home, instead of relying on airlines.

Government Policy and Airline Industry Perspectives

The conversation touches upon government policy regarding airline passenger rights. The withdrawal of a Biden-era plan that would have required airlines to compensate travelers for disruptions caused by the carrier is mentioned. Brian Kelly offers a perspective on this, citing the "law of unintended consequences."

• Airline Profitability: He points out that many airlines are not highly profitable, with some, like Spirit and JetBlue, struggling.
• Impact of Mandated Compensation: Forcing airlines to pay significant compensation for every cancellation could lead to increased fares and other negative outcomes.
• Sensible Consumer Protections: While Kelly supports sensible consumer protections, he understands why the administration might be hesitant to impose substantial new expenses on the airline industry. He reiterates the importance of travelers being aware of DOT rules regarding refunds.

Credit Card Strategy and Recommendations

Brian Kelly, who holds 28 credit cards and has a near-perfect credit score, offers advice on credit card selection.

• Cards to Ditch: He advises against most no-annual-fee cards and store credit cards, as they generally offer less valuable rewards.
• Valuable Cards:
  • Amazon Card: Decent for frequent Amazon shoppers.
  • Capital One Venture X Card: Offers 100,000 points.
  • Small Business Credit Cards: Highly recommended for small business owners due to significant sign-up bonuses. The Capital One Venture X Business, for example, launched with a 400,000-point bonus, which can be transferred to airlines for first-class travel.
• Annual Fees vs. Perks: Kelly encourages people not to be deterred by high annual fees, as these cards often come with numerous valuable perks that can outweigh the cost.

Conclusion

The discussion concludes with a reminder for travelers to protect themselves by being informed about their rights, utilizing credit card benefits, and staying proactive during travel disruptions. The current situation, while improving, still necessitates vigilance. The conversation highlights the trade-offs between consumer protection and the financial health of the airline industry, emphasizing the importance of informed decision-making for travelers.