- Plan would have guaranteed passengers $200 to $775 for airline-caused delays
Travelers would also have received meals, hotel stays and rebooking at no cost
Airlines argued the measure would increase costs and ticket prices
The Trump administration has moved to withdraw a Biden-era proposal that would have required airlines to compensate passengers and cover their expenses for lengthy delays or cancellations caused by carriers, marking a setback for consumer protections in aviation.
The rule, first announced in 2023, aimed to guarantee cash compensation ranging from $200 to $775 for passengers stuck due to disruptions within an airline’s control, such as mechanical failures or system outages. It also would have required airlines to provide meals, hotel accommodations, and rebooking assistance at no additional cost.
The White House said in a document posted on Thursday that the Department of Transportation (DOT) plans to withdraw the notice "consistent with department and administration priorities," USA Today reported.
Transportation Secretary Pete Buttigieg, who championed the plan alongside President Biden, described it as a “game changer” for consumers. “When an airline causes a flight cancellation or delay, passengers should not foot the bill,” Buttigieg said at the time.
The proposal was opened for public comment last year but never advanced to final implementation. This week, the Trump administration announced its withdrawal in a regulatory notice from the Office of Information and Regulatory Affairs, citing alignment with its policy priorities and those of the Transportation Department.
Airlines opposed the plan
Consumer advocates had largely welcomed the plan, while airlines opposed it, warning it would drive up operating costs and ultimately raise ticket prices. Neither Airlines for America, the industry’s main trade group, nor FlyersRights.org, a leading passenger-rights group, had any immediate comment on the Trump move.
Similar rules have existed in the European Union since 2004, giving passengers rights to compensation and replacement flights for long delays or cancellations. A 2023 study found those protections helped reduce delays by putting more financial pressure on airlines.
Currently, U.S. airlines are required to refund passengers for canceled flights, but they have no obligation to provide compensation for delays.
Other airline givebacks
The DOT also disclosed on Thursday it is considering rescinding regulations issued under Biden in April 2024 that required airlines and ticket agents to disclose service fees alongside airfares to help consumers avoid unnecessary or unexpected fees. The requirement was put on hold by the court pending an industry legal challenge, USA Today said.
The department is also planning to reduce regulatory burdens on airlines and ticket agents by writing new rules detailing the definition of a flight cancellation that entitles consumers to ticket refunds, as well as revisit rules on ticket pricing and advertising.