Continental Airlines says that it plans to cancel its flights rather than risk stiff fines under brand new federal rules. These new rules are being designed to punish carriers for delaying passengers. The CEO of Continental Airlines, Jeff Smisek, said Tuesday that the results will be that passengers will have more trouble getting to their destination, end of story.

A spokesman for the United States Transportation Department said that airlines would be able to avoid these fines by doing a better job of scheduling flights and crew members. Under a Transportation Department rule taking effect next month, airlines can be fined up to $27,500 per passenger if a plane is delayed for three hours and passengers cannot get off the plane. This is a fine that can easily reach into millions of dollars very quickly on some flights. In that regard, it would be easier for airlines to simply schedule less flights to avoid paying this big fee.

Smisek went on to say at an investor conference in New York that the long delays are rare and mostly caused by an outdated air traffic control system that the government itself has failed to upgrade. Airline industry officials say that they should decide whether to wait out delays, even if the delays go past three hours.

Pretty much what Continental Airlines is saying is that if a plane is being delayed, it is better for them to simply cancel the flight and refund all the money that they got for the tickets than have to pay $27,500 per person since no ticket would cost that much anyway. Thus, passengers could be looking at more flights simply being canceled at the last minute to avoid this big fee.