The Trump administration has officially withdrawn a proposal from the Biden era that would have required airlines to provide cash compensation to passengers experiencing flight delays or cancellations. According to the New York Times, the Department of Transportation (DOT) published a formal notice announcing the withdrawal of the rule that would have mandated airlines to pay between $200 and $300 for domestic flight delays lasting at least three hours, and up to $775 for longer delays extending beyond nine hours.
The now-abandoned regulation, introduced in 2024 under President Biden and then-Transportation Secretary Pete Buttigieg, aimed to provide greater protection for air travelers facing disruptions. The DOT justified the decision by stating that the proposed rule would create “unnecessary regulatory burdens” and that abandoning it would “allow airlines to compete on the services and compensation that they provide to passengers rather than imposing new minimum requirements through regulation, which would impose significant costs on airlines.”
Contrast With International Airline Practices
Unlike the United States, several major jurisdictions worldwide have implemented mandatory compensation schemes for airline passengers. The European Union, Canada, Brazil, and the United Kingdom have established airline delay compensation rules that provide passengers with financial recourse when faced with significant disruptions.
Currently, while U.S. airlines are required to refund passengers for canceled flights, no large U.S. carrier guarantees cash compensation for flight delays, leaving American travelers with fewer protections than their international counterparts. The airline industry, on the other hand, has reportedly welcomed the administration’s decision to withdraw the proposed rule.
Airlines for America, a trade association representing major carriers including United, American Airlines, Delta, Southwest, and Alaska, told The New York Times that “A4A carriers provide automatic refunds for significant delays and cancellations if a passenger chooses not to be rebooked, and they have competitive policies regarding reimbursements for food, transportation, and lodging for cancellations and significant delays within a carrier’s control.”
The DOT indicated that, beyond scrapping the compensation plan, it is also considering rescinding other Biden-era regulations requiring airlines and ticket agents to disclose service fees alongside airfares.
Consumer Impact
For travelers, the withdrawal means that while refund rights for canceled flights remain intact, there will be no new federal requirements for airlines to provide additional compensation for delays, regardless of length or impact on travelers. The agency had initially announced in September that it planned to withdraw the proposal.
In a filing submitted to the Federal Register, the DOT stated that federal law does not give the agency the authority to require airlines to provide compensation for flight delays. The department also noted that its “deregulatory actions” were part of a “broader effort to ensure travelers are treated fairly,” while expressing concern that such rules could raise ticket prices and “compromise safety for the sake of efficiency.”
