Australian airlines claim compensating passengers for delayed or cancelled flights would drive up prices

Exclusive: Companies push back after advocates call for introduction of compensation scheme

• Get our morning and afternoon news emails, free app or daily news podcast

Australian airlines are pushing back against calls for new laws that would force them to pay cash compensation to passengers whose flights are delayed or cancelled, with claims it would force carriers to preemptively raise air fares to fund payouts.

The resistance follows the Australian Competition and Consumer Commission, consumer advocate Choice and the Australian Lawyers Alliance all separately raising the prospect of a compensation scheme to rein in airlines arbitrarily changing their schedules, as the government considers its aviation white paper.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup