The Trump administration has formally scrapped a Biden-era proposal that would have required airlines to compensate passengers for lengthy delays caused by issues within the airline’s control. The repeal was published in the Federal Register on Monday, officially ending the Department of Transportation’s (DOT) preliminary rulemaking process that began in December under President Joe Biden.
The proposed system would have provided differentiated compensation starting at $200 for delays of three hours and increasing to $775 for delays of nine hours or more. Although never adopted, the plan aimed to bring U.S. consumer protection closer to the standards of the European Union, where compensation for airline-related disruptions has been in place for nearly two decades.
A DOT spokesperson said the Biden plan “does not reflect the compensation consumers are currently entitled to,” adding that the administration’s broader goal is to protect passengers “without imposing overly burdensome regulations” that could increase ticket prices or affect operational safety. The Trump administration has argued that deregulation promotes innovation and competition, ultimately benefiting travelers.
Airlines and industry associations lobbied strongly against the proposal, claiming mandatory compensation would lead to higher fares and reduced route availability. However, consumer advocates said the plan would have been a “historic step” toward accountability and noted that it included protections for travelers with disabilities, who often face disproportionate challenges during delays and cancellations.
Ultimately, the DOT concluded that additional regulations are “not consistent” with the administration’s priorities. The agency also highlighted that several airlines already offer limited remedies such as free rebooking or travel credits, although none currently offer direct cash compensation for manageable delays.
(Source: nbcnews.com)
