Airline Passenger Safety Act of 1996

Airline Passenger Safety Act of 1996 - Amends Federal aviation law to prohibit chemical oxygen generators from being transported as cargo on any passenger or cargo aircraft, regardless of whether the generator has been discharged. Sets forth smoke or fire detector system and fire extinguishing system requirements for air cargo compartment transportation of oxidizers and oxidizing materials (other than chemical oxygen generators).

Directs the Administrator of the Federal Aviation Administration to modify existing regulations for aircraft airworthiness standards to require that each Class D cargo or baggage compartment be equipped with a separately approved smoke or fire detector and a separately approved built-in fire extinguishing system meeting certain criteria.

Requires the Administrator to: (1) evaluate the practices of, and training provided by, all air carriers for accepting passenger baggage and freight shipments and for identifying undeclared or unauthorized hazardous materials; and (2) require all air carriers to revise, as necessary, their practices and training on the basis of such evaluation.