Trump administration axes Biden-era rule to provide passenger compensation for delayed flights
In a significant regulatory shift, the Trump administration has officially withdrawn a proposed rule that would have mandated airlines to compensate passengers for significant delays or cancellations. Initially proposed under the Biden administration, this rule aimed to require airlines to pay between $200 to $300 to passengers whose domestic flights were delayed by more than three hours due to issues under the airlines’ control, such as maintenance problems or staffing shortages. This measure was designed to enhance consumer protections in the U.S. air travel sector, aligning it more closely with the EU’s EU261 regulation, which is widely regarded as a benchmark for passenger rights in Europe.
The withdrawal of this proposed rule, announced by the U.S. Department of Transportation (DOT) and led by Secretary Sean Duffy, reflects the current administration’s broader deregulatory approach. The DOT justified the decision by stating that the rule would impose “unnecessary regulatory burdens” on airlines. This decision comes amid increasing pressure from the airline industry itself, which has been advocating for the reduction of consumer protections. For instance, Airlines for America (A4A), a lobbying group representing major U.S. airlines, had previously submitted a detailed request to roll back various consumer protection measures. As a result, passengers will continue to be eligible for refunds when flights are canceled, but the potential for compensation for delays has been significantly diminished.
This regulatory rollback raises concerns about the future of consumer protections in the airline industry. With the current administration signaling a willingness to reconsider existing regulations, it remains uncertain how many more consumer rights could be affected. The airline industry, buoyed by this latest decision, is likely to continue pushing for further deregulation, which could lead to additional changes in how passenger rights are managed in the U.S. air travel landscape. As travelers navigate this evolving environment, they may need to stay vigilant about their rights and the potential implications of these regulatory changes on their travel experiences.
https://www.youtube.com/watch?v=8Epfm65_j4E
The Trump administration formally withdrew a proposed rule Friday that would have required airlines to compensate passengers for significantly delayed or canceled flights.
The rule, which was
proposed late last year
under the Biden administration and former Secretary of Transportation Pete Buttigieg, would have required airlines to pay passengers $200 to $300 for domestic flights delayed more than three hours.
The rule would have applied to delays that are caused by something considered to be within the airline’s control, like maintenance issues or staffing challenges, but not external factors like air traffic control delays or bad weather. That would have aligned the U.S. more closely with Europe’s EU261 rule, which is generally seen as the gold standard of consumer protections in air travel.
The U.S. Department of Transportation, under current Secretary Sean Duffy,
said in September
that it planned to withdraw the proposed rule, and officially repealed it Friday, as first reported by
Reuters
. The DOT said the rule would result in “unnecessary regulatory burdens,” according to Reuters.
SPENCER PLATT/GETTY IMAGES
Passengers will still be entitled to refunds
when their flight is canceled and they choose not to travel. Under a measure passed last year, refunds must be issued automatically to the original form of payment.
Related:
Getting a refund for a canceled or delayed flight: What to know in 2025
Friday’s move aligns with the Trump administration’s broader deregulatory stance, which pushes to remove regulations and rely on competition between companies instead.
The airline industry, which pushed for the passenger compensation rule to be nixed, has seen the current regulatory environment as an opportunity, and has been aggressive in pushing for further rules to be scaled back or removed altogether.
In May, Airlines for America, or A4A, filed a 93-page request
seeking to roll back a slew of consumer protections
. A4A is the lobbying organization for U.S. airlines and represents Alaska Airlines, American Airlines, Delta Air Lines, JetBlue, Southwest Airlines, United Airlines, Hawaiian Airlines and cargo carriers Atlas Air, FedEx and UPS.
It’s unclear how many airline rules the DOT might ultimately roll back — if any at all. But if Friday’s move is any indication, it’s likely that this won’t be the last consumer protection rule we see revoked.
Related reading:
When is the best time to book flights for the cheapest airfare?
The best airline credit cards
What exactly are airline miles, anyway?
6 real-life strategies you can use when your flight is canceled or delayed
Maximize your airfare: The best credit cards for booking flights
The best credit cards to reach elite status
What are points and miles worth? TPG’s monthly valuations
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
